The doomers are hoping to drive the real estate market into hysterics, just for fun. It’s easy for buyers and sellers to get caught up in it too, and think the sky is falling.
Let’s identify the terms, what doomers want you to believe, and the truth:
Doomers: Sellers are hitting the panic button.
Truth: If we are taking about a surge in active listings, it is because the list of aspirational sellers (those who will only move if they get their price) is growing longer. They aren’t the market makers; they are only helping those that are.
Doomers – Home prices are falling.
Truth: Sellers mis-priced their home from the beginning, and now they are hoping that if they knock off a couple of bucks, it will make a difference.
Affordability/Revert to Mean
Doomers – Home prices must come down so regular people can afford to buy.
Truth – Around here, homes haven’t been affordable for the common man in years, yet home prices have accelerated. The NSDCC market is only for the affluent now.
Higher Rates Will Crush the Market
Doomers – Home prices and rates go hand in hand. When rates go up, prices must come down.
Truth – The bumps in rates are only giving the affluent a reason to pause, in hopes of a price correction.
More Open Houses
Doomers – Realtors are panicking.
Truth – More realtor trainees are trying their luck.
Home Sales Dropping
Doomers – Market is being crushed.
Truth – More sellers are holding out for their price.
Doomers – Zero
Truth – If the NSDCC monthly sales stay in the 100-200 range, we will be fine. Those are January counts, and the usual market seasons have been topsy-turvy since March 2020 so it will give the demand more time to get pent-up.
Doomers – 50% off
Truth – Sellers determine what they can live with, and their ego plays a bigger role than you might imagine. Nobody has to sell any more, so expect resistance to selling for lower than the last sale. Only the extremely-motivated sellers will sell for a big discount today – it will take years for that to become commonplace.
I’ll add a few more later!