WHEN IT COMES TO HOUSING, FAR TOO MANY PEOPLE JUMP TO IMMEDIATE CONCLUSIONS WITHOUT CONSIDERING ALL THE FACTS, WHICH IS HOW MYTHS ARE CREATED.
RELYING ON THE FACTS
SOCIAL MEDIA HAS BECOME A MEGAPHONE FOR NEGATIVE NARRATIVES, WHICH PERPETUATE MYTHS AND OVERLOOK THE FACTS AND DATA THAT REVEAL THE TRUTH.
With over 50% of millennials and 70% of Gen Z expecting a housing crash, it is no wonder that numerous YouTube, TikTok, Instagram, X, and Facebook posts are devoted to the demise of the housing market. Negativity sells. It gets the clicks. It supports the narrative that far too many are banking on. First-time homebuyers had to contend with skyrocketing values during the COVID-19 pandemic, and many missed the opportunity to purchase. Today, record-high home prices persist alongside a more elevated mortgage rate environment. When will prices plunge? When will it be the right time to make a purchase? They ultimately turn to social channels that have been habitually incorrect, steering countless consumers in the wrong direction for years. The better strategy is to uncover the facts and ignore the myths.
MYTH—Housing is flooded with homes on the market. Across the U.S., the active inventory grew to 1.45 million homes in April, 21% higher than in the same month last year and 39% higher than two years ago. Yes, there are more homes on the market in almost every city and neighborhood; yet, the inventory is rising from record-low levels. It is all about perspective. In April 2019, there were 1.83 million homes, 26% higher than today. In 2016, it was at 2.12 million homes, 46% higher. Yet, those data points were during the housing market’s expansion years from 2012 through 2019. In April 2006, before the Great Recession, there were 3.42 million homes, nearly 2 million more homes on the market. Inventory levels reached 3.81 million in 2008, a substantial 162% higher than today. While demand levels are considerably muted due to the higher mortgage rate environment, they are matched against a limited supply compared to the significantly higher levels of the Great Recession. This fact is one of the main reasons housing prices have been so resilient.
Joy Lee
949.290.4903
joy@heyjoylee.com
DRE# 02102122
