From Your President of the Pee Dee REALTOR ® Association Amy McCalman Kirby
Today ’ s Biggest Housing Market Myths
Have you ever heard the phrase : don ’ t believe everything you hear ? That ’ s especially true if you ’ re thinking about buying or selling a home in today ’ s housing market . There ’ s a lot of misinformation out there . And right now , making sure you have someone you can go to for trustworthy information is extra important .
If you partner with a REALTOR , they can clear up some common misconceptions and reassure you by backing them up with research-driven facts . Here are just a few misconceptions they can help disprove .
1 . I ’ ll Get a Better Deal Once Prices Crash
If you ’ ve heard home prices are going to come crashing down , it ’ s time to look at what ’ s actually happening . While prices vary by local market , there ’ s a lot of data out there from numerous sources that shows a crash is not going to happen . Back in 2008 , there was a dramatic oversupply of homes that led to prices crashing . Across the board , there ’ s an undersupply of homes for sale today . That makes this market a whole different scenario ( see chart below ):
finding a home to buy won ’ t feel quite so impossible anymore . 3 . I Have To Wait Until I Have Enough for a 20 % Down Payment
Many people still believe you need a 20 % down payment to buy a home . To show just 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 .”
And if you look at the data from the National Association of Realtors ( NAR ), you can see the typical homeowner isn ’ t putting down as much as you might expect ( see graph below ):
So , if you think waiting will score you a deal , know that data shows there ’ s not a crash on the horizon , and waiting isn ’ t going to pay off the way you ’ d hoped .
2 . I Won ’ t Be Able To Find Anything To Buy
If this nagging fear about finding the right home if you move is still holding you back , you probably haven ’ t talked with an expert REALTOR lately . Throughout the year , the supply of homes for sale has grown . Data from Realtor . com helps put this into context . While there are still fewer homes on the market than in a more normal year like 2019 , inventory is still above where it was at this time last year ( see graph below ):
So , if you ’ re remembering all that media coverage about record-low supply during the pandemic , you can rest a bit easier . While the market isn ’ t back to normal just yet , inventory is moving in a healthier direction . And that means as your options improve , you can let go of this now outdated myth because
First-time homebuyers are typically only putting down 6 %. That ’ s far less than the 20 % so many people think they need . And if you ’ re looking at that graph and you ’ re more focused on how the number for repeat buyers is closer to 20 %, here ’ s what you need to realize . That ’ s only because they have so much equity built up in their current house that can be used to make a larger down payment for their next move .
This goes to show you don ’ t have to put 20 % down , unless it ’ s specified by your loan type or lender . Many people put down a lot less . Not to mention , depending on the type of home loan you get , you may only need to put 3.5 % or even 0 % down . So , if you ’ re buying your first home , you likely don ’ t need nearly as much for your down payment as you may think .
An Agent ’ s Role in Fighting Misconceptions
If you put your move on pause because you heard one or more of these myths yourself , it ’ s time to talk to a trusted REALTOR . An expert REALTOR has more data and the facts , just like this , to reassure you and help break through any misconceptions that may be holding you back .
Bottom Line
If you have questions about what you ’ re hearing or reading , connect with a local REALTOR . You deserve to have someone you can trust to get the facts .
10 - REAL ESTATE WEEKLY www . peedeerealestateweekly . com Equal Housing Opportunity