In today's real estate market, buyers are constantly wrestling with three key emotions: fear, comparison, and the fear of missing out (FOMO). As they navigate complex transactions, these feelings are often further stirred by the media's portrayal of the market. 

We aim to unpack and combat these fears, helping buyers understand the true narrative behind the market trends they hear about.

Fear, the Media, and Data - Making Sense of It All

The first thing to tackle is fear - particularly fear driven by media headlines. The best way to combat anxiety is with data. Data is factual, and while it can be interpreted and presented in different ways, the underlying facts are difficult to argue with.

For instance, let's take the case of ATTOM, a data reporting agency that predominantly publishes data on short sales and foreclosures. Over the past two years, ATTOM has consistently released foreclosure reports, leading to a prevalent sense of doom and gloom about the market.

However, digging deeper into these figures and understanding the broader context is crucial. An increase in foreclosures in a particular market might sound alarming, but if that increase is from two foreclosures to four, it's hardly an indicator of a systemic issue.

Unpacking the ATTOM Reports

A perfect example is a recent article by ATTOM, published on July 14th, 2023, titled "Top 10 U.S. housing markets with the worst foreclosure rate in Q2 2023." While the article may incite fear, closer inspection reveals several discrepancies.

Firstly, the data itself is flawed. The article states, for example, that Jacksonville is leading the way in foreclosures. However, ATTOM's own data set, released a day earlier, makes no such claim.

Secondly, the article is written to instill fear among prospective homebuyers, leading them to question their decision to buy a home, especially if they are looking at one of the cities listed.

Understanding the Long-Term Picture

Despite what these fear-inducing articles might suggest, the foreclosure activity in 2023 is considerably less than in 2010—the peak of foreclosures—with only around 11% of the number seen in 2010.

Moreover, these numbers don't reflect the current state of the market. The average foreclosure process in the U.S. now takes 1,212 days—nearly four years. Therefore, the homes referenced in these articles are those from transactions as far back as 2019 or 2018, pre-pandemic. The landscape has changed considerably since then, and today's market is very different.

Bottom Line: Don't Be Led Astray

The overarching message for prospective homebuyers is this: don't let fear-driven narratives lead you astray. Yes, foreclosures are happening, but they're not an accurate reflection of the current state of the market. 

As we've mentioned in previous episodes, the demand for housing is growing significantly, spurred by first-time homebuyers born in the '90s, a demographic poised to shake the market even further.

So, if you're a buyer, fear not. Remember, these headlines don't always reflect the whole picture. The housing market is far healthier than some might have you believe.

Stay informed, understand the data, and keep your emotions in check. You're not just buying a house; you're investing in your future, which looks promising.