It’s probably not a surprise to you but you may not want to believe everything you hear about real estate. Especially if you heard it from the news headlines or someone who isn’t a licensed agent. Like with many topics, there is a lot of misinformation in the news or on main stream media.
The best way to clear up this misinformation is by talking to a trusted source, like an local real estate agent with experience in this ever changing market. They can clear up many common misconceptions and reassure you by telling you the truth that are backed up by research-driven facts.
Here are a few misconceptions we hear frequently:
1. I’ll get a better deal once home prices crash.
Have you heard someone say that they are waiting for the crash or for prices to come down? There is a lot of data that shows that there is no housing crash on the horizon. In 2008, the dramatic oversupply of homes led to prices crashing, however, we are still seeing an undersupply of homes available right now for all active buyers.
Since there is likely no crash on the horizon, waiting for prices to drop drastically won’t pay off the way you’d hoped. Instead, it will just prolong the search for your next home.
2. I won’t be able to find a home to buy.
If you’ve heard from friends or family that tried to or bought a home in the recent years, you may have heard stories about the lack of homes and the fight for the ones that were for sale. However, throughout this year, the supply of homes for sale has grown.
Data from Realtor.com helps put this into context. There are still fewer homes on the market then a normal year (for example, 2019), but the inventory is still up from where it was this time last year.
So, don’t be opposed to buying because you think there aren’t enough homes available. While the market isn’t back to normal just yet, inventory is moving in a healthy direction and that means your options are improving.
3. I have to wait until I have enough saved for a 20% down payment.
Many people still believe you need to have a 20% down payment to buy a home.
To show how widespread this myth is, Fannie Mae says, “Approximately 90% of consumers overstate or don’t know the minimum required down payment for a typical mortgage.”
Data from National Association of REALTORS (NAR) shows that on average first time home buyers put down 6% and repeat home buyers, 17%. Additionally, the number is likely higher for repeat buyers because of the equity they have from the sale of their home when moving.
The best way to get accurate information, based on your specific situation, is to schedule an appointment with us and with your lender.
One of our roles is to dispel misconceptions. If you put your move on pause because you heard and believed one or more of these myths, it’s time to talk to us about what’s really happening.
If you have questions about what you’re hearing or reading, give us a call today! You deserve to have someone you can trust to give you the facts and we want to do that for you.
