This is the May Market Update for Brooke Team, which services Connecticut, Massachusetts Rhode Island, Florida, and now New York,I'm going to give you everything you need to know to make an informed decision about either making a move or selling your house in the next 12 months.

Well, it's really easy to turn on the TV and see what the news says and look at all the headlines out there that show that housing prices have cooled over the last six months. And there's massive concern about that, is the housing market crashing right now? What's going on? Let me show you this graph, it's probably pretty helpful for many to see in a visual form what's going on in the real estate market.

So, this is actually what's happening over the last 12 months and if you are looking at this just like I did and I only saw the last 12 months, I might actually be pretty concerned because it looks like houses prices are going up and then they're starting to come down as well at the same time. This is actuallyreally typical in a cyclical year. Well, what happens is that in the spring months, the properties that are larger, the family homes, those are the times that those properties are getting listed, and those properties sell actually for more money than some of the other smaller properties that sell regularly throughout the year.

When those sale prices actually occur and close, that drives median sale prices higher. But in the fall, in the winter months, when fewer of those families are typically moving because they're centralized in their moves around the school districts and that school year, then housing prices, actually the median housing prices, typically decline in those fall and winter months, making it look like the housing market is declining. What we need to do is look at where the housing market started at the beginning of the year and ended at the end of the year. And when we do that, we can actually see, was there an increase, a decrease, or a stabilization in the housing prices from the beginning to the end of the year.

Alright, now let's look at the last three years’ worth of data

Well, if we look at that, we can actually see that the start and end of each of these consecutive years end up adding up to an appreciating market, which shows that the market over the last 3 years has been appreciating.

Now, I've described why this increasing market has been occurring over the last several years in past real estate market updates. And this includes a lack of housing inventory, all the way up to a massive demand from Millennials looking to purchase properties. Now, if this continues to occur housing prices can only appear to increase, but that's not happening everywhere throughout the country.

Now, why is this?

Well, people are number one, migrating to and from different areas around the country which is causing influxes in supply and demand which are going to make things look like, either places are crashing or immensely increasing, that's not what's happening. In fact, of the number of active listings currently on the market in the entire United States as of March 2023, there were only 562,000 active listings.

This is significantly down from years prior when there were approximately 1.1 to 1.4 million homes on the market. This means that with such low supply and high demand for people to become homeowners, especially in the millennial age bracket, that's why we're seeing multiple offers on many properties throughout the country. Now, if this is not the case then it is typically the act of overpricing that has occurred or a migratory pattern where people are not moving to an area as significantly as they were in years past.



What does this mean over the course of the last five years or ten years?

Well, let's take a look at the graph here. This is the data for the last 10 years and what's happened.

Not only can we see an increase in the pricing that's happening. We're also seeing the fact that every single year, there happens to be an increase in the price and then a decrease in the price. This leads us to the typical human feeling of, I don't want to buy at a high and I also don't want to sell at a low.

Well, tying your house pricing is best done with a real estate professional. That's what we're here for. Brooke Team agents are trained specifically on how not only to list your house with a specific list price strategy but also, when is the best time to purchase property and timing that with your family's needs. Definitely reach out if you've been considering at all a move in the next 12 to 24 months. 

So let's keep looking at the data because many people are worried that as housing prices increase, we may be headed for another housing crash as was similar to 2008.

Well, this is 2008, and that drop that you see right there is due to massive credit fraud. And you can see the drop that occurred, it’s probably around that fifteen percent mark and as you can see over the next several years, there was a stabilization that occurred with minor appreciation. And then, as we've gotten into this new wave of homebuyers, these Millennials who are looking to purchase homes along with some of the other effects that happen from covid-19 and the lack of new construction that happened, that's what's caused a massive increase in median sale prices across the country. 

Now, once again, this may not be for every city and every state. We may have specific areas that do not see appreciation or may see a significant cool around the country. But in many of the areas that Brooke Team services in Connecticut, Massachusetts, Rhode Island, Florida, and even New York, we are still seeing a strong buyer demand for housing in the market. So, if you're a seller now is a fantastic time to buy.

If you are a buyer now, it is absolutely challenging as some of the last Market updates that we've released have been indicating it's challenging to secure a property. Don't worry though, we have a 14-STEP PLAN in order for you to secure a home in this market, that's why we're winning homes over many other agencies that compete against us.

Staying informed by looking at, not only the micro set of data in your neighborhood or area but also looking at the macro data as to what has happened historically is what's required especially now in this market in order to make an informed decision about buying or selling your home.

Brooke Team agents are specifically trained on how to communicate this information with our buyers and sellers. If you've been considering either making a move on the Buy side or on the Sell side in the next 12 to 24 months, would you please reach out, we'd love to have a conversation with you in order to educate you about your next steps.

And now, without further delay, here are some of the real estate statistics, like Days on Market, Median Sale Prices, Housing Inventory, and where the market is going in the states where Brooke Team services clients.

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