Pending Home Sales Keep Falling as Market Conditions 'Normalize'

Last week's reported drop in Gross National Product of 1.4% was historic. Other than during the initial quarter of the global pandemic and regional wars in the Middle East, in my lifetime we have never had a drop in Gross Domestic Product. Ever. And it is stunning to me how, while the stock market did decline, otherwise, it seems to be mostly met with a yawn.

Going into this week, the pending home sales had already started to decline in response to the double whammy of increased home prices and increased interest rates, yet the changes TO DATE have only taken the market from sizzling hot to extremely warm.

I do think the market is grasping to show a dramatic shift in place, and while a dramatic shift may occur, it has not yet WHEN YOU LOOK AT THE DATA.

So, the real estate news industry has to create fake news.

Take, for example, the recently reported drop in first-time buyers' share of the home market. In a recent article, the National Association of Realtors reported that the percentage of homes purchased by first-time buyers dropped from 33% in January 2021 to 27% in January 2022.

OK, is that significant? I mean, it does not sound like it?

So, they create a chart. And the chart makes it look significant, as it goes from the top down to the bottom.

OK, so this looks bad, right?

But why does the charge start at 25% and go to 33%? Is that the full range of options? Well, not really.

What if we put the chart to show from 0 to 35%? How does it look?

Well, that looks better, but it is more accurate? What if we showed the full range of options from 0 to100%? How would it look?

Now, I put a drop from 100% just to illustrate the point. At some point in time, every home was purchased by a 1 st time buyer. But if you look between January 2021 to January 2022 it looks.....basically.......flat.

So, not only is often data inaccurate, but here we have what may be accurate data but the presentation really creates a story. Because, over the past year, does it look like there is any significant trend?

All this is to say be careful with the data you are being presented as the news industry is desperate for a huge change in the market, where the truth is the market is cooling slightly but still hot to the touch.

If you are looking to sell, this is still the best market to sell in during my career, and you should get a great price and the flexibility to make the sale work for you. The best thing you can do to get top dollar is to remove anything you can and get rid of what can be thrown out, donated, or stored. Clean and fix what can be done by a handyman to create a great first impression, but otherwise save your money.

If you are buying, you should look for escrow fallouts, be patient when buying, and make sure to get the loan rate locked in that makes sense for your transaction.

How can I help you? Call, text, or email me.
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Topic: How to Get a Sale NOW in Probate Real Estate

There are lots of programs that promise to help you sell a LOT of homes, but how do you get your 1st sale? As the baby boomer ages, the number of homes being passed on to heirs continues to increase. I'll share with you 11 different ways that I have generated a listing or buyer sale that do not cost you any money.