5 Real Estate Charts Revealing The Truth of Real Estate.

5 Real Estate Charts Revealing The Truth of Real Estate

The real estate market is, well, unpredictable. But real estate charts can help you track trends and learn from what’s happened in the past to forecast shifts we may see in the near future.

I have seen a lot of charts that can help paint a picture of what the market looks like now, what current trends are telling us about what’s around the corner, and where we could be headed.?

Here are 5 great charts that can help you understand the market as it is now and what might be lurking down the road. Plus, you’ll look like a superhero and truly shine as the local expert when you can confidently address your buyers’ and sellers’ concerns.

The Honeymoon Is Over for Homesellers

A Tale of Two Markets

It was the best of times for homeowners. It was the worst of times for homebuyers.?This chart clearly shows?how bleak 2022 has been for homebuyers. In fact, according to the Data & Analytics division of Black Knight Inc., which released its monthly Mortgage Monitor Report, May 2022 proved to be the worst housing market in 16 years for potential buyers while homeowners experienced record amounts of tappable equity.?

For your homeowner clients, this is a great opportunity to take advantage of that equity to make some home improvements. If they’re looking to sell sometime in the future, start preparing now with some renovations.

Seller: So What Renovations Should I Invest In? Me: Hardwood Floors, for the Win!

Switching gears, I find?this chart showing the cost recovery?on renovation projects insightful. If you have sellers wanting to know the best investment for their money on repairs before selling, you can’t go wrong with wood flooring, apparently.?But don’t overlook adding a new primary bedroom suite. Because yes, multigenerational housing is making a comeback.

Slow Appreciation Is Still Appreciation

Home prices are de-escalating, the demand is cooling, and the market is showing signs of a return to something closer to normal. But it’s not doom and gloom.

The bottom line is?homeowners will still come out ahead?compared to those who continue to rent. The sooner a person invests in real estate, the sooner they can start their equity growth. Appreciation at a slower, more realistic rate, is still appreciated.?

We’ve come to expect huge appreciation gains over the past few years. But honestly, that was just a magical, once-in-a-generation shift fueled by mass need changes during a once-in-a-generation pandemic. What is coming is a return to?normal.

And first-time homebuyers will be able to re-enter the market with a much better shot at finding, and winning their first home. Buyers won’t have to put 20 offers in just to win one.

Real estate is a fascinating industry, complete with quick changes that can happen overnight. When buyers and sellers can come together to complete a transaction without someone curling up in a fetal position, it works better for everyone.

Instant Wealth: Apparently It CAN Happen to You

Homeowners have had record gains in the past couple of years, and without having to do anything to earn it. “Rather, most of this money has been created by the simple fact that housing, in short supply and high demand across America, has appreciated at a record pace during the pandemic. Millions of people — broadly spread among the 65 percent of American households who own their home — have gained a share of this windfall,” according to?this article in the New York Times.?

For those who stood to make these gains, it was a once-in-a-generation opportunity. But that looks to be reversing and coming back down to normal levels. There will still be gains in equity, but more slowly from this point forward.

Saiid Zamani, Realtor, ABR, SRS, MCTT, KW LABS Advisor

Keller Williams Realty Devon-Wayne