Is the market plummeting?

Randal:

- Welcome back to "Stay Focused," Focus Real Estate's weekly video series. Just wanted to unpack a little bit of the headlines. What are they talking about? Crazy market? Is it over? Is the dream over? Are we looking at a bubble? What's happening? And we've got a bunch of numbers and some other videos to share with you that I'm sure you're gonna either have seen, or already seen.

Erik:

- That might make your head spin, but-

Randal:

- But what's really plummeting.

Erik:

- I wouldn't say in our market anything's plummeting but what we're not seeing is the same level of appreciation.

Randal:

- Exactly.

Erik:

- That many of the headlines of many markets have seen over the last year or two. Where they've seen 15, 20% year-over-year price appreciation. What we're seeing is that's not happening, as much, in many of these markets. Does that mean that markets, the prices are falling? No, they're just not going up as high as what they were. So maybe they're going up 5, 6, 7, 8%. Hey, they're still going up. Doesn't mean the market's crashing. We're just not seeing the same level of growth that we saw.

Randal:

- All the economists track the housing market on an average of a 5% growth per year. That's basically been the growth of the sales or that home prices have tracked over the last a hundred years, so 5% a year. Now during COVID, we were seeing 20.3% nationally. Over all the United States house prices grew 20.3%. Now we did unpack a little bit earlier. Our housing prices in the Boston area were anywhere between two and 10.7%, on average, year over year, going up. Those aren't huge gains, right?

Erik:

- Yeah, we weren't seeing that huge, steep increase in prices that many markets were.

Randal:

- So as you're reading these headlines on national new syndicates about the plummeting market. Really what they're talking about is the plummeting rate of appreciation, coming down to what they're forecasting to be, depending on the market that you're in, between three and 9% over the next year into 2023. That's not bad news. That's actually really good news for both homeowners and buyers.

Erik:

- It's a reasonable appreciations. And in the media and the news they love those headlines. They love those, getchas. So when you see our plummeting prices we're not talking about, necessarily, prices of every house as dropping in price, just the rate of increase. So, be careful what you read out there.

Randal:

- Well, thanks for watching and until next time, stay tuned and stay focused.

Erik:

- Stay tuned and stay focused.

Randal:

- Just like us, super focused.