Using Data to Debunk Misleading Headlines

By Marc Austin Highfill

Marc Austin Highfill has experience in the residential, commercial, and investment real estate markets in Richmond. His team, Marc Austin Properties at EXIT First Realty, has been ranked in the Top 10 sales teams (for units sold and sales volume) by the Richmond Association of Realtors since 2006. The team averages 5-6 sales every week. Marc is currently ranked the # 1 EXIT Agent in Virginia and # 4 agent in North America (for sales volume).

Three misleading headlines that I’ll be breaking down and debunking.

Are your clients feeling uncertain about the state of the real estate market due to misleading media headlines? As real estate agents, it’s our responsibility to provide clarity and help our clients gain a better understanding of the situation. Let’s address some of the misconceptions and examine the facts to paint a clearer picture of the current market.

First, let’s talk about the “unicorn years” that spanned from 2020 to the first part of 2022. These were extraordinary times characterized by low mortgage rates and skyrocketing buyer demand, resulting in unprecedented price surges. It’s crucial to understand that this period was an anomaly and is unlikely to be repeated.

Misleading Headline #1: Home Appreciation Has Crashed
One common misleading claim is that home appreciation has crashed. However, if we compare the current situation to the pre-unicorn years, home price appreciation has increased. Although prices have come down from their peak in 2020 and 2021, they still remain higher than they were in the normal market before that period.

Misleading Headline #2: Increase in Homes for Sale
Another misconception is that there are significantly more homes available for sale now. Yet, when we consider the unicorn years, the number of homes on the market is still considerably lower than in a balanced market. Since 2017, the availability of homes has been steadily decreasing. While there has been a slight increase in inventory compared to the unicorn years, there is still a shortage of homes to meet the current buyer demand.

Misleading Headline #3: Impending Wave of Foreclosures
A wave of foreclosures is often predicted, causing concern among many. While there has been an increase in foreclosure filings compared to the unicorn years, it’s important to understand the context. The foreclosure moratorium during the pandemic helped homeowners stay in their homes and build equity during a challenging period. In reality, the number of foreclosures remains significantly lower than in a normal market. Homeowners currently possess more equity than ever before in US history.

If you need help understanding the data to better educate your clients, don’t hesitate to contact us by phone call or email. Our coaches are available to work with you and go over the facts in a way that puts your clients’ fears at ease. Remember, it’s not the market…it’s the marketing that makes the difference!