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.
I can clear up some common misconceptions and reassure you by backing them up with research-driven facts. Here are just a few misconceptions I 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. There’s an undersupply of homes for sale today. That makes this market a whole different scenario.
So, if you think waiting will score you a deal, know that data shows there’s not a crash coming. Waiting isn’t going to pay off the way you would hope.
2. I Won’t Be Able To Find Anything to Buy
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, inventory is still above where it was at this time last year.
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 yet, inventory is moving in a healthier direction. That means as your options improve, you can let go of this outdated myth. 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, you can see the typical homeowner isn’t putting down as much as you might expect.
First time homebuyers are typically putting down 6%. That’s far less than the 20% so many people think they need. It’s closer to 20% for repeat buyers. That’s only because they have so much equity in their current house. That equity 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. Many people put down a lot less. Depending on the type of home loan you get, you may only need to put 3.5% or even 0% down. If you are buying your first home, you likely don’t need nearly as much for your down payment as you may think.
If you put your move on pause because you heard one or more of these myths, it’s time to talk to me. I have the data and facts to reassure you and help break through these misconceptions.