Debunking Today’s Most Common Housing Market Myths

You’ve probably heard the saying, “Don’t believe everything you hear.” This holds especially true when navigating today’s housing market, where misinformation can lead to poor decisions. Whether you're buying or selling, it's crucial to ensure you have access to accurate and reliable information.

Working with a real estate professional can help you separate fact from fiction. Here are three common housing market myths that real estate agents are debunking every day:

1. The Market Is Going to Crash, So I’ll Wait for Lower Prices

The idea that the market is about to crash and home prices will plummet is a persistent myth. If you’re waiting for this to happen, you could be making a costly mistake. Unlike the 2008 financial crisis when an oversupply of homes drove prices down, today's market is experiencing an undersupply. This scarcity of homes for sale is actually keeping prices stable. While price trends may vary by location, there’s no data to suggest a nationwide crash is on the horizon. Waiting for one could mean missing out on current opportunities. (see chart below):

2. There Aren’t Enough Homes for Sale

Some buyers are hesitant to enter the market because they believe there simply aren’t enough homes available to meet their needs. However, inventory levels have improved. Realtor.com reports that while supply is still lower than pre-pandemic levels, there are more homes available for sale than last year. This means that while the market isn’t back to “normal,” it's heading in a positive direction, and buyers have more options than they might think. (see chart below):

3. I Need a 20% Down Payment to Buy a Home

One of the biggest misconceptions is the belief that you need a 20% down payment to buy a home. According to Fannie Mae, nearly 90% of consumers overestimate the required down payment. In reality, most first-time buyers are putting down just 6%, far below the 20% figure that has become so ingrained. Depending on the type of loan, buyers can qualify with as little as 3.5%, and in some cases, even 0% down. This means you can start your home-buying journey with less upfront cash than you may have imagined. (see chart below):

The Value of a Knowledgeable Agent

If you’ve delayed your plans because of these common myths, it’s time to consult a trusted real estate agent. They have the tools, data, and expertise to help you make informed decisions and move forward with confidence.

Conclusion

If you're hearing conflicting information about the housing market, don't go it alone. Reach out to a real estate expert who can guide you with the facts, ensuring you make the best decision for your unique situation.