Unicorn Real Estate Market is Gone

Unicorn Real Estate Market is Gone 

Full Video Transcript Below

Unicorn Market is Gone

Alice Lema: [00:00:00] Hey, real estate fans, Alice Lema here, broker John L Scott in beautiful southern Oregon with another edition of The Weekly podcast. And today we're gonna talk about the three reasons why the quote unquote unicorn market is long gone. So the reason we're bringing this up is because we still have some buyers and sellers. More sellers than buyers that are, are kind of still in this mindset of the hyper accelerated market during 2021 and 2022. And so now that it's a couple of years behind us, we're getting data to show exactly not only what happened, but how compared to where we are starting to be now and where we were before pre pandemic.

And I have this really great graph from Keeping Current Matters, and I wanna show you the first reason is that the showing traffic is gone down from 2021 and 2022, but it's [00:01:00] still higher than what it was in between 2017 and 2019, 2020. So this is how it feels out in the market when you're out in there every day buying and selling houses. It does feel like the the showings are higher than they were before the pandemic, but they're not as high as they were during the pandemic. And so what that tells us is that we're normalizing. But we're still better than we were before the shutdown. Okay, so that's number one. The showing traffic is starting to subside.

Number two, the appreciation is going down. And that had to happen folks, because what we had going on between 2021 and 2022 was not sustainable. And there were spikes. That's what they were, they were spikes. So, but if you look here at the chart nationally in 2022, we had a 5% appreciation, which is normal [00:02:00] and sustainable.

And if you go back before the shutdown, if you go back to 2017 and 2019, you can see we're right, we're right there. And for Southern Oregon in particular, we bounce around kind of between on a bad year, 3% and sometimes six to 9% depending on what's going on everywhere else in the world and what's going on with us.

But thirdly, I do wanna mention that our foreclosures are still way down. Now, during the pandemic 2021, 2022, we had a really, really small amount of foreclosures and a normal market relies to a certain extent on having that inventory come on the market. There's a certain percentage of foreclosures that are considered normal. It is sad, it is hard, but that's a normal part of our market. So you can see again that even though we definitely have more foreclosures than we did a couple years ago, it's still nowhere near what it was before [00:03:00] the shutdown. So those are three reasons why the unicorn years, if you wanna call 'em that are gone.

But it also is a healthy sign in my opinion, that the market is stabilizing and normalizing. And I think that's quite remarkable in just a couple years, especially with all the world events and all the interest rate changes and all the uncertainty, especially in southern Oregon. You know, we are a lifestyle destination here in southern Oregon and there's always a certain amount of demand, but since the shutdown, there's even more demand and we still have a shortage.

So it's, even though there's more homes available for sale than there were, it's still not what we need to have a normal neutral market as we would call it. Except for in the million dollar plus range we, gosh, we have over a year I believe, of inventory in that price range. But below that, depending on what neighborhood and [00:04:00] what price point you're in, those homes are still selling in the six month or last range.

And six months is supposed to be the normal neutral market, you know, where it, the, the buyers are not in charge and the sellers are not in charge. So that four to six months, days on market is kind of what we look for, just as a reminder in case you forgot. So it's still an amazing time to get your home on the market, even though here we are in June 2023.

We're getting a little bit of a slow start. People are still slow to get their houses on the market for a lot of different reasons. But those that do can be met with some good market success and then they get to move on with the next step of their life and the buyers get to move into a new house themselves.

So it's a win-win for everybody. So that's what we wanted to talk about. Just try to have a accurate mindset if you're buying or selling, and if you know anybody who's buying or selling help, [00:05:00] remind them. Those years are gone. Bye-bye. No more unicorn. If you wanna talk about the next step in your real estate life, gimme a call, gimme a text, 541-301-7980.

You can also catch this week's local market statistics for all three counties below in the video called Market Stats for this week, and this is the weekend ending June 8th. And then also check out our radio show on KC M X. It airs 10:00 AM on Saturdays, and 6:00 PM on Sundays. That's KC M X FM 99.5.

Lot of great, great information on the radio show. That's it for this week. We'll see you next week. Hug those you love. Bye now.