The truth behind why our real estate market feels so intense lately.
Our real estate market is going berserk! …Or is it? I bet that any conversation you’ve had with someone about real estate lately has been about how high home values are and that you can’t believe you have to pay so much for a house right now. What if I told you that based on all the data, our current housing prices are right on trend?
The National Association of Realtors (NAR) was founded in 1908, and they’ve been tracking an array of real estate data for decades. They’ve found that in the U.S., the real estate market appreciates by about 4% each year, on average. Even with 2020’s and 2021’s nuttiness, we’re still right within that trend. So why does it feel so insane out there these days?
Our current housing prices are right on trend.
Well, as you may know, from 2008 through about 2012, home values decreased, which was scary. However, in 2020, homes appreciated 9%, then rose another 17% in 2021, which is massive! However, even with all of that growth, it put us back on track for that 4% average trend—it just made up for the declines we experienced a few years ago. It might feel drastic to make some of the offers real estate agents are advising today, but if you study real estate history and look at the data, the present offers are not ridiculous, and you shouldn’t feel foolish for making them.
We’re right on trend with where pricing should have been all along. If you have any questions about our market or buying a home, don’t hesitate to reach out to us via phone or email. We’re here to help you navigate this complicated market and put you at the best advantage.