Podcast - 6/9/23
🎙️📊 Join Jay & Tom on our upcoming podcast episode where we delve into why you can not compare the market in 2023 to what we saw in 2021 and 2022. 🤝🏠 Some have referred to the last two years as "unicorns" in the real estate industry. We examine the factors behind this phenomenon and discuss the details on buyer demand, home prices, and foreclosures over the last 7 years. 💡
But that's not all! You definitely won't want to miss our featured house of the week in Charles Town, WV. 🏡 This newer detached home offers the convenience of main level living, providing the perfect combination of comfort and style. Get a firsthand look at this fantastic property that could be your dream home! Tune in now to gain insights and stay up-to-date on the latest real estate trends. 🎧🏡 #realestate #podcast #marketcomparison #buyerdemand #homeprices #foreclosures #housingmarket #houseoftheweek #CharlesTown #mainlevelliving
of Jay Day and the Day home team of real estate teams with our weekly real estate podcast where we are second, third week of June, 2023. Man, summers are flying by.
Oh, yeah. Well, what I wanted to talk about was I saw this article that had me laugh a little bit when I read the headline, and it was Today's real estate market, the unicorns have galloped off
The Unicorns, meaning tell me about the unicorns.
So the unicorn, when you look at the definition of what the unicorn is, it's something that is greatly desired, but difficult or impossible to find.
And so they no longer exist in the real estate world.
Well, it says it's galloped off, and I'll give some of the details here. Like I said, it was very catchy and I enjoyed reading about it. And as we talked about, the pandemic changed real estate over the last couple of years, the demand was crazy. Interest rates were low. And it was really interesting to try and find something. And still, people are still struggling to find the perfect house. It's not at the perfect rate anymore. So that's where they joke about it galloping off. And what some of the areas that they're talking about is buyer demand is one. So buyer demand, when you look at the headlines, and we've talked about this, the headlines say there aren't buyers out there, the market, we've talked about it, but we still sell. And when I say we real estate, there's still 10 over 10,000 houses a day that sell in the United States. So that's definitely not a low number. Of course, the demand may be down from the unicorn years, which they're classifying as 2021 and 2022.
We were together doing podcasts all the way through it. We did some on the phone, but we were discussing it. It was kind of a different experience talking to you of real estate besides everything we were going through personally learning about that.
Yeah, and I mean, when you look at it, so one of the things is showing traffic. Showing traffic hit an all time. When we go back seven years, it hit an all time high in 2022, just in 2021 was crazy. 2023 we're still almost double where we were in 2020. And it's, it's just basically showing that. Yeah. And I've talked about this before.
Explain, I'm sorry, what the term you used was showing traffic.
Yeah. So how many buyers are coming through houses?
I see. That's what I thought it was.
Yes. And realistically, we've talked about it. I'm like, well, and especially as we got into earlier this year when we were talking about things, it was, okay, well there's going to be less showings. It's not going to be as crazy, but it's still crazier than when it was normal. We're still in a under supply of inventory, meaning we are still having an issue where it's not a buyer's market. And candidly, with the interest rate increases, we are seeing less buyers be able to qualify. But we're still looking at historic numbers. It's just not, when you compare it to the last two years, it's not the same. But the last two years were the oddballs.
So more people are calling to buy a home than sell a home.
Or there's just
That's a good way to put it. Yeah.
Alright. Yeah. Well that's, that's been going on now for a while, like you said, man.
Yeah. And then number two, home prices. So again, in 2021 and 2022 home prices. So 2021, and this is just for the entire US 2021, home values increased 18%. In 2020, they increased 11%. In 2022, they increased 5%, and they're still increasing now. So a 5% increase is still a great, it's still good money, good numbers. You just can't expect it to be 18%, 11%. That is not normal. That's why we call those the unicorn years, or this company called 'em the unicorn years. Now foreclosures, this is another really interesting one as well. So there was 1 million fewer foreclosures during 2020, 2021, 2022. So 1 million less foreclosures in that three year gap.
Well, was that because they were sort of outlawed or put on pause for awhile?
You nailed it.
You nailed it. All right. I mean, they did the forbearance, they weren't allowed to do foreclosures. So them making all of those changes basically stopped foreclosures from even happening. And we're starting to see them roll in a little bit, but again, at nowhere near the rate, because basically they were given, they were handing the money out and giving forbearances, letting people not have to worry about it. And then I think the other side of it too was when you look at it, if you could find a way to afford it, if you could refinance and you have a low interest rate, that makes it a heck of a lot easier to be able to deal with. Where we run into issues with the foreclosures is when people have adjustable rate mortgages and their mortgage keeps going up.
When you have a lower interest rate and it's fixed and there's no change, you have less likelihood of that happening. So I guess the gist of this is, and it's sort of what I talked about as well, with interest rates, and you mentioned it on our last podcast. I said, Hey, when rates go up, where we are now is not normal. I just didn't call it unicorn years. I was like, this is not the norm. The people should not expect to have rates in the twos and the threes. That is not normal and it will not last. And you pretty much what we're seeing is that timeframe, nothing was normal. And I think we talked about that quite a bit too. I'm like, none of this makes any sense.
Yeah, no, it was crazy. No doubt about it. Because I happened to be looking for a home at the same time.
Oh yeah. And thank God we got you in the earlier part of everything, right?
Hey, after three years at the beginning of the pandemic, man, how lucky is that? Yeah. We looked for three years and then it just happened. It was a blessing.
I remember the first time I met you out because we couldn't see each other at the station to do the podcast, but we were doing, I was doing my job and you were doing your personal work of looking at houses then. And when I met you, I was like, all right, I'm sorry. This is weird. We've got to wear a mask. Here's hand sanitizer. Don't touch anything in the house.
Don't turn the light switches on.
Sure, I understood, I understood that point. Yeah, it was nuts.
And like I said, it was funny because, you know, and I ended up having to see each other because of looking at properties. And then we would do our podcast via phone.
Yeah, I understand.
And I'm like
Hey, look, we were all, everybody had their protocols during all that.
Yeah. Oh yeah. I don't blame. We were kicked out of our office for a period of time as well, so nobody was allowed to even go into the office.
I understand. Yeah, it was a mess man.
We all had to follow whatever rules we were told. Right.
We tried and not lose our minds.
Yes. So you ready for the house of the week?
37 Penticton Way in Charlestown, West Virginia. This home is listed in the fours, and it is, give you some details here. Four bedrooms, three baths, and give you a little bit more information about it. It was built in 2014. It has a spacious layout featuring three main level bedrooms, including a primary suite and three full bathrooms on the main level, situated in a picturesque setting. The home provides a serene and peaceful environment that you can call home. The basement is finished, the basement has bedroom, bathroom, rec room. So this home has everything finished. Nothing you need to worry about. In the fours in Charlestown, West Virginia, which is another great area. A lot of people have moved out, out that way. Go to wfre.com. Look up Tom and Jay's real estate podcast. You can see photos. If you like what you see, click on the button and we can get you a private tour in to see this home yourself.
Jay Day and the day home team of Real Estate teams with our weekly real estate podcast. Thank you for listening. Tell your friends all about it.