We’ve all heard the saying, "Don’t believe everything you hear," and it’s especially relevant in today’s housing market. Misinformation can cloud judgment when buying or selling a home. Having a reliable source for accurate information is crucial. Here’s where a knowledgeable real estate agent can help clear up common myths with fact-based insights.
1. Waiting for Prices to Crash Will Get Me a Better Deal
If you’re anticipating a dramatic drop in home prices, it’s important to consider current market data. Unlike the 2008 housing crisis, which was fueled by an oversupply of homes, today’s market faces an undersupply. This means a price crash is unlikely. Data shows that waiting for prices to plummet may not be the best strategy for scoring a deal (see chart below). The market conditions are different now, and prices are not expected to crash in the near future.
2. I Won’t Find Anything to Buy
Worried about finding the right home? Your concerns may be based on outdated information. The inventory of homes for sale has been growing over the year. According to Realtor.com, while the market isn’t as robust as in a typical year like 2019, the current inventory is better than last year’s levels (see graph below). The record-low supply of the pandemic era is improving, so finding a home is becoming more feasible.
3. I Need 20% Down for a Home
Many people still believe that a 20% down payment is required to purchase a home. However, Fannie Mae reports that around 90% of consumers either overestimate or are unaware of the minimum down payment required for most mortgages. Data from the National Association of Realtors (NAR) shows that first-time homebuyers typically put down about 6% (see graph below). Repeat buyers may put down closer to 20%, but that’s often because they’re leveraging equity from their current home. In reality, you might only need 3.5% or even 0% down, depending on your loan type and lender.
The Agent’s Role in Debunking Myths
If these myths have been holding you back, it’s time to consult a trusted real estate agent. They can provide data and facts to counteract misconceptions and help you navigate the market with confidence.
If you have questions or concerns based on what you’ve heard or read, reach out to a real estate professional. Having someone you trust to provide accurate information is essential for making informed decisions in today’s housing market.
Comments