Happy Monday, First name / friend!
We started last week’s team meeting with a market update from Jackson Pineau, Director of Public Affairs for the Minneapolis Association of Realtors®. Before he started, Sarah asked us all, “How would you respond if someone asks you, ‘How’s the market?’” Several answers included words like slow, challenging, and weird.
However, as Jackson talked through statistics from this year, comparing them to the last several years, we got a surprise. The market is actually relatively stable right now. It hasn’t returned to what we think of as “normal” — those pre-pandemic numbers. Instead, the data shows us that we’re in a new normal. And our surprise at that is a prime example of recency bias.
Recency bias is our tendency to compare the present to the very recent past without taking it in a longer-term context. Things might feel hard because last month was relatively easy. Or things might feel really good, because last year was a dumpster fire for you and it’s finally quiet.
Things change. The question becomes, is this a weird period we just have to wait out, or is this a new normal we need to adapt to?
This is your reminder to seek outside perspectives. Look to people who are well-informed and non-inflammatory in the way they present information. Whether you’re in professional contexts, when you’re advising clients and helping them understand current market dynamics; or in personal situations.
