{"id":2016,"date":"2021-09-03T00:00:20","date_gmt":"2021-09-03T00:00:20","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=2016"},"modified":"2021-09-03T00:00:20","modified_gmt":"2021-09-03T00:00:20","slug":"5-reasons-todays-housing-market-anything-normal","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/5-reasons-todays-housing-market-anything-normal\/","title":{"rendered":"5 Reasons Today\u2019s Housing Market Is Anything but Normal"},"content":{"rendered":"<div id=\"attachment_2017\" style=\"width: 760px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-2017\" decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-2017\" src=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2021\/09\/20210902-KCM-Share.jpeg\" alt=\"\" width=\"750\" height=\"410\" srcset=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2021\/09\/20210902-KCM-Share.jpeg 750w, https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2021\/09\/20210902-KCM-Share-300x164.jpeg 300w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><p id=\"caption-attachment-2017\" class=\"wp-caption-text\">5 Reasons Today\u2019s Housing Market Is Anything but Normal<\/p><\/div>\n<p>There are many headlines out there that claim we\u2019re reverting to a more normal real estate market. That would indicate the housing market is returning to the pre-pandemic numbers we saw from 2015-2019. But that\u2019s not happening. The market is still extremely vibrant as demand is still strong even while housing supply is slowly returning.<\/p>\n<p>Here\u2019s the\u00a0<a title=\"definition of normal\" href=\"https:\/\/www.merriam-webster.com\/dictionary\/normal\" target=\"_blank\" rel=\"noopener noreferrer\">definition of normal<\/a>\u00a0from the\u00a0<em>Merriam-Webster Dictionary<\/em>:<\/p>\n<blockquote><p><em>\u201cconforming to a type, standard, or regular pattern: characterized by that which is considered\u00a0<strong>usual, typical, or routine.<\/strong>\u201d<\/em><\/p><\/blockquote>\n<p>Using this definition, here are five housing industry metrics that prove we\u2019re nowhere near normal.<\/p>\n<h4><strong>1. Mortgage Rates<\/strong><\/h4>\n<p>If we look at the\u00a0<a title=\"30-year mortgage rate\" href=\"http:\/\/www.freddiemac.com\/pmms\/\" target=\"_blank\" rel=\"noopener noreferrer\">30-year mortgage rate<\/a>\u00a0chronicled by\u00a0<em>Freddie Mac<\/em>, we can see the average rates by decade:<\/p>\n<ul>\n<li>1970s: 8.86%<\/li>\n<li>1980s: 12.7%<\/li>\n<li>1990s: 8.12%<\/li>\n<li>2000s: 6.29%<\/li>\n<li>2010s: 4.09%<\/li>\n<\/ul>\n<p>Today, the average mortgage rate stands at 2.87%, which is very close to the historic low.<\/p>\n<h5>Currently, mortgage rates are anything but\u00a0<strong><em>usual, typical, or routine.<\/em><\/strong><\/h5>\n<h4><strong>2. Home Price Appreciation<\/strong><\/h4>\n<p>According to\u00a0<em>Black Knight<\/em>, a housing data and analytics company, the\u00a0<a title=\"average annual appreciation\" href=\"https:\/\/cdn.blackknightinc.com\/wp-content\/uploads\/2021\/04\/BKI_MM_Feb2021_Report.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">average annual appreciation<\/a>\u00a0on residential real estate prices since 1995 has been 4.14%.<\/p>\n<p>According to the\u00a0<a title=\"latest forecast\" href=\"https:\/\/cdn.nar.realtor\/sites\/default\/files\/documents\/forecast-q3-2021-us-economic-outlook-07-29-2021_1.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">latest forecast<\/a>\u00a0from the\u00a0<em>National Association of<\/em>\u00a0<em>Realtors<\/em>\u00a0(NAR), home price appreciation will hit 14.1% this year, which will be greater than any year since\u00a0<em>Black Knight<\/em>\u00a0began collecting this data.<\/p>\n<h5>Currently, home price appreciation is anything but\u00a0<strong><em>usual, typical, or routine<\/em><\/strong>.<\/h5>\n<h4><strong>3. Months\u2019 Supply of Inventory (Homes for Sale)<\/strong><\/h4>\n<p>According to\u00a0<a title=\"NAR\" href=\"https:\/\/www.nar.realtor\/blogs\/economists-outlook\/inventory-and-months-supply\" target=\"_blank\" rel=\"noopener noreferrer\">NAR<\/a>:<\/p>\n<blockquote><p><em>\u201cMonths\u2019 supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.\u00a0<strong>Historically, six months of supply is associated with moderate price appreciation<\/strong>, and a lower level of months\u2019 supply tends to push prices up more rapidly.\u201d<\/em><\/p><\/blockquote>\n<p>As of the latest\u00a0<em><a title=\"Existing Homes Sales Report\" href=\"https:\/\/www.nar.realtor\/newsroom\/existing-home-sales-climb-2-0-in-july\" target=\"_blank\" rel=\"noopener noreferrer\">Existing Homes Sales Report<\/a><\/em>\u00a0from NAR, the current months\u2019 supply of inventory stands at 2.6. That\u2019s less than half of a normal supply.<\/p>\n<h5>Currently, the supply of homes for sale is anything but\u00a0<strong><em>usual, typical, or routine<\/em><\/strong>.<\/h5>\n<h4><strong>4. Days It Takes To Sell a Home<\/strong><\/h4>\n<p>The\u00a0<a title=\"days-on-market metric\" href=\"https:\/\/www.nar.realtor\/research-and-statistics\/research-reports\/realtors-confidence-index\" target=\"_blank\" rel=\"noopener noreferrer\">days-on-market metric<\/a>\u00a0gives an indication of how hot a market is and how quickly homes are selling. In 2019, prior to the pandemic, the average days on market stood at 35, according to NAR. Today, that number is cut in half and is now at 17 days.<\/p>\n<h5>Currently, the days-on-market metric is anything but\u00a0<strong><em>usual, typical, or routine<\/em><\/strong>.<\/h5>\n<h4><strong>5. Number of Offers per Listing<\/strong><\/h4>\n<p>According to NAR, the\u00a0<a title=\"number of offers per listing\" href=\"https:\/\/cdn.nar.realtor\/sites\/default\/files\/documents\/2021-07-realtors-confidence-index-08-23-2021.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">number of offers per listing<\/a>\u00a0stood at 2.2 in 2019. Today, that number is double at 4.5.<\/p>\n<h5>Currently, the number of offers per listing is anything but\u00a0<strong><em>usual, typical, or routine<\/em><\/strong>.<\/h5>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>When\u2026<\/p>\n<ol>\n<li>Mortgage rates are near historic lows<\/li>\n<li>Price appreciation is at historic highs<\/li>\n<li>Housing inventory is less than half of the normal amount<\/li>\n<li>The time it takes to sell a home is cut in half, and<\/li>\n<li>There are twice as many offers on each house<\/li>\n<\/ol>\n<p>\u2026it\u2019s hard to say we\u2019re in a normal market.<\/p>\n<p><strong>Contact us:<\/strong><br \/>\nPHP Houses<br \/>\n142 W Lakeview Ave<br \/>\nUnit 1030<br \/>\nLake Mary, FL 32746<br \/>\nPh:\u00a0<span id=\"gc-number-1\" class=\"gc-cs-link\" title=\"Call with Google Voice\">(407) 519-0719<\/span><br \/>\nFax:\u00a0<span id=\"gc-number-2\" class=\"gc-cs-link\" title=\"Call with Google Voice\">(407) 205-1951<\/span><br \/>\nemail:\u00a0info@phphouses.com<\/p>\n<p><strong>Let\u2019s Connect:<\/strong><br \/>\n<a href=\"https:\/\/www.facebook.com\/WeBuyHousesCentralFlorida\/\">Facebook<\/a><br \/>\n<a href=\"https:\/\/www.linkedin.com\/in\/walter-diloreto-25403710\/\">Linkedin<\/a><br \/>\n<a href=\"https:\/\/twitter.com\/WalterDiLoreto\">Twitter<\/a><br \/>\n<a href=\"https:\/\/www.instagram.com\/wdiloreto\/\">Instagram<\/a><\/p>\n<h5><em>THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h5>\n","protected":false},"excerpt":{"rendered":"<p>There are many headlines out there that claim we\u2019re reverting to a more normal real estate market. That would indicate the housing market is returning to the pre-pandemic numbers we saw from 2015-2019. But that\u2019s not happening. The market is still extremely vibrant as demand is still strong even while housing supply is slowly returning. <a class=\"continue\" href=\"https:\/\/phphouses.com\/blog\/5-reasons-todays-housing-market-anything-normal\/\">Finish Reading<span> 5 Reasons Today\u2019s Housing Market Is Anything but Normal<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2016"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=2016"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2016\/revisions"}],"predecessor-version":[{"id":2018,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2016\/revisions\/2018"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=2016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=2016"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=2016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}