Real Estate Myths (Busted)

3 Things That Are Not Going To Happen in Today's Housing Market. 

There’s a lot of uncertainty right now and that’s leading to some dramatic headlines. And if you’re thinking about making a move, that can make you feel a little less sure about your decision.

 

A recent study by CNBC asked homebuyers what they’re most worried about, and three themes kept coming up again and again:

  • Mortgage rates
  • The number of homes for sale
  • Home prices

But a lot of what you may be hearing on those is based more on misconceptions. Not facts. So, let’s break it down and separate fact from fiction.

Misconception #1: “I’ll Just Wait, Because Mortgage Rates Are Going To Fall Dramatically”

While mortgage rates have come down a bit in the last few weeks, forecasts don’t show a major drop ahead. The most likely scenario is that rates stay somewhere in the low 6% range this year.

Even with rates where they are today, it’s already more affordable than a year ago. So, even if they don’t change much, it’s still better than it was.

Misconception #2:"There Are Too Many Homes for Sale Right Now”

While it can vary a lot based on where you live, only 9 states have more inventory than pre-pandemic today. That’s a key reason why there still aren’t enough homes for sale to trigger something like the crash back in 2008.

Even though inventory is up compared to last year, it’s still nearly 14% lower than it was during the last normal housing market (2017-2019)

Misconception #3: “Home Prices Are About To Crash”

You’ve probably seen this one, too. The confusion is coming from the fact that some metros are experiencing slight price declines. And influencers are running with that and saying prices are crashing. But that’s not the reality.

Most areas are seeing prices rise, not fall and that’s because:

  • Many homeowners aren’t selling because they don’t want to give up the low mortgage rate they lockedin a few years ago. And that’s keeping a lid on how much inventory can grow.
  • Since inventory is still below pre-pandemic norms, there aren’t enough homes for sale to cause a price crash.
  • And even in markets with more inventory, some sellers are choosing to pull their homes off the market instead of cutting prices.

And those are 3 big reasons prices aren’t headed for a crash.

And even in the markets experiencing mild declines, it isn’t enough to cancel out the big gains most homeowners have seen in the last 5 years

Bottom Line

Online posts are going to make things sound worse than they are. If you want a true, data-bound look at what’s really happening in today’s market, lean on us.  Your local Real Estate Experts.

Let’s connect so you have someone to separate fact from fiction today.