Three Eye-Opening Stats About the Real Estate Industry—And How It Is Not 'Bubble Bursting'
Jan 12, 2023Three Eye-Opening Stats About the Real Estate Industry—And How It Is Not 'Bubble Bursting'
The real estate industry is on fire compared to the Great Recession. Working as a Realtor® through four recessions has its advantages, such as spotting stats that will blow your mind:
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The Median Days on the Market before a ratified sale date is 24 (Source: National Association of Realtors®, NAR)
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Homes in foreclosure is 0.6% (Source: NAR Analysis of BLS, MBA, NAR data)
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248,000 construction jobs have been added since November 2021 (Source, U.S. Bureau of Labor Statistics BLS)
However, it’s not until you break each of these down that you realize how quickly the talk of a housing bubble bursting is nonsensical.
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Median Days on Market: 24
What an impressive stat at face value. But what's more amazing is that nationwide houses sell in weeks—not months. That's much faster than a buyer's market. It is the representation of a seller's market.
2. Homes in foreclosure is 0.6%
The last time we saw the growth of distressed properties populating the multiple listing services was in the decade before last. Gone are the subprime lending practices that drove the previous housing bubble.
Fun fact: The Dodd-Frank Wall Street Reform and Consumer Protection Act is thirteen and one-half years old.
3. 248,000 construction jobs have been added since November 2021
This stat is mind-boggling, as if the above wasn’t impressive enough.
To give you a sense of how big that is, a couple of years ago, contractors and home builders complained that they couldn’t find enough or any construction workers to hire. In addition, the total nonfarm payroll employment increased by 223,000 in December, and the unemployment rate edged down to 3.5 percent (Source, BLS).
Final Prediction
I’m sure that talk of a surprisingly resilient housing market will overtake the chatter of a housing bubble the same way surprises consistently surpass conjecture—quietly. And at this rate, that will probably happen by the end of 2023.
What do you think? Do you agree? Disagree?
Let me know in the comments!
Questions? Or are you or someone you know navigating life’s transitions? Let lauded negotiator Pat Kapowich make your next move easy. Visit Kapowich’s website for free area housing data, insights and trends. Or put his artful blend of specialized credentials, decades of experience and endorsed skill set to work for you. Kapowich instills confidence when buying, selling, relocating or resizing homes. Do not just make a move — make the best move. Contact him today, Realtor Pat Kapowich, a career-long consumer-protection advocate.
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