Local Real Estate News vs National News

The national narrative can be quite different from what is happening in your local market. Nearly 80% of home builders, according to data from the National Association of Home Builders say the media is creating fear among consumers about the real estate market. They feel this is keeping would-be buyers on the sidelines.

“I also think the media plays a key role in how individuals perceive the markets,” says Erin Sykes, chief economist and real estate wealth adviser at Nest Seekers International. “It tends to overtake even what they experience in their own personal lives. But real estate is local.”

What is happening in Austin, Texas is entirely different from what is happening in Northern Colorado. Some cities still see homes sitting on the market, but in Northern Colorado we have seen a surge in multiple offers again. Home buyers who read national headlines may get a distorted view of what’s happening in their local market. Many consumers may not understand that recent dips in home sales constitute a return to a more normal market after pandemic-fueled peaks.

When comparing year-over-year data nationally—and likely locally, too—remember that the spring market in 2022 was “incredibly unusual,” says Jessica Lautz, NAR’s deputy chief economist and vice president of research. Then, “homes for sale had the highest number of offers since 2015, at 5.5 offers,” Lautz adds. “Today, it’s 2.5 offers. Buyers were savvy and knew mortgage interest rates were going to increase and jumped into the market to lock in a home immediately.”

In winter 2022, the national housing market saw the highest activity among investors and vacation-home buyers since 2015, accounting for 22% of sales at the time. Also, national housing inventory dropped to its lowest level since 1999, Lautz says. “Drawing comparisons to winter and spring of 2022 should be done with caution. It was an unusually hot market—and not a particularly healthy housing market,” Lautz says. “Today’s market still has limited housing inventory, but buyers see some equilibrium with sellers and have the opportunity to determine the best home for them without a frenetic pace.” *Source: REALTOR® Magazine.

According to the Altos Reports, which tracks listings in each market, Fort Collins saw the median list price of NEW listings increase to $794,500 this week, with the market action index hovering around 53, which leans over to a more robust seller's market. This is an increase over last month's market action index of 49. Inventory has decreased to 94, yet buyers are out.

As a home seller or buyer, it is essential to rely on your local real estate agent to equip you with current knowledge of market activity. Don't let the national narrative lead your decision to buy or sell.

I spend at least 20% of my day looking at market statistics so that I can help my clients move forward with knowledge. I also welcome anyone to call with any questions, with no obligation. I am passionate about making sure buyers and sellers are educated in the process!

If you'd like to receive a weekly report from Altos to stay updated on home sales activity, click here. These reports are extremely valuable in keeping you informed and deciphering between the national narrative and the actual local trends.

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