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 lots of folks predicting doom and gloom. And right now, making sure you have someone you can go to for trustworthy information is extra important. Cause they’re all wrong.
Feel frustrated? Well, that’s normal. You don’t have to stop the world just to stop the feeling. You just have to partner with an experienced real estate team like us, we can help clear up some common misconceptions and reassure you by backing them up with research-driven facts. Here are just a few myths you might be hearing:
No, you won’t. Why? If you’ve heard home prices are going to come crashing down, it’s time to look at what’s actually happening, because they won’t. 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):
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. It just won’t.
If this nagging fear about finding the right home if you move is still holding you back, you probably haven’t talked with us lately. Throughout the year, the supply of homes for sale has grown, it hasn’t doubled, so it could be discouraging. The thing is, new homes hit the market every day. 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 and you’ll have new opportunities each day. (see graph below)
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 And that means as your options improve, you can let go of this now outdated myth because finding a home to buy won’t feel quite so impossible anymore. Just don’t count on a surge of new listings, again, expect it to be similar to the last 12 months or so.
Many people still believe you need a 20% down payment to buy a home. You don’t. We have people buying with 0%-5% all the time, and many people average under 10%. 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):
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. They’re moving money from one house on to the next, the equity is allowing them to make the move to a higher price point.
Now, you do still need some money, but definitely not a full 20%. We can meet up to show you the math, how it all works, and help you see what first time buyer programs you might qualify for.
The world is confusing. You have hopes and dreams. We can help you make it all make sense and work. You deserve to have someone you can trust to get the facts. Call us at 717-371-0557, let’s talk.
If you’re still waiting for the market to “home prices to fall”, you’re likely to wake up in the middle of the night, with your head in your hands and nothing more than rental life. And when you thinking about not buying all those years ago, you’re standing face to face with I told you so….. well.
You know we hate to say we told you so, which means all you have to do is call and get together with us, and we’ll never have to say good luck babe. You won’t need luck when you have us to help you, you’ll be in your new home, with no regrets.
Your Friends in Real Estate,
Jason Burkholder Team
Hometown Property Sales
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Jason Burkholder
Kelly Burkholder
Jaci Hoosier
Ron Weaver
717-371-0557 – cell
717-207-9083 – office
Have you thought about owning but didn’t think you “made enough money” to buy a home?
I was reading an article on CNN Money.com today titled “How to rescue the housing market: Foreclosures!”. Not a great title I would say and more importantly in my opinion not a great concept at all.
The gist of the article is that the government needs to reverse the policies of the last 4 years since the housing downturn and actually encourage foreclosures as a means of “stabilizing” the housing market. They included this interesting graph (above) showing how more home owners are becoming delinquent for longer periods of time. (read on after the jump for more)
Welcome Back Readers!
Once again Zillow.com has ranked Lancaster County as one of the best places to buy a home right now! As reported on Forbes.com yesterday, due to “affordability, as measured by home price to income ratios; the unemployment picture (both the absolute figure and how it’s trending over time); the foreclosure situation; and year-over-year housing price trends” Lancaster County PA is the 8th Best Place to buy a home in the nation! Read on after the jump for more!
Welcome Back Readers. Today we are touching on a timely topic for many. Foreclosure. Timely for many, as an article about it in today’s paper was titled “Record number losing homes”. Ouch. Record number.
The article cites 2010 Lancaster County Pa Foreclosure filings as setting a new record at 1,334. This is an increase over 2009 at 1,319. But who really expected differently? With the state of the economy, I look at those numbers and am surprised they aren’t higher. That figure represents an increase of 1.21%.
That’s the new record, up 1.21%. If all we are going to do is talk statistics, that is nothing, an anomaly, barely worth a mention in the history books. In the end, statistics, nameless, faceless statistics are what these numbers become when reported this way. And therin lies the problem. Read on after the jump to find out more.
Welcome Back Readers! Today we’re talking about Buyer Incentives. You’ve seen them, buy this house and seller will pay selling agent bonus, seller will include new Cadillac, enter contest to win a Cruise to Bahamas. Now, not many sellers have been offering these types of incentives in Lancaster, but in new construction we have seen No Mortgage Payments for a Year, $40,000 in Builder Upgrades, buy our home and if yours doesn’t sell we buy yours, etc.
On the surface, you might think these are all great ideas, but they aren’t. They are actually terrible ideas. Read on after the jump to find out why!
Image courtesy of Alan Cleaver via Flickr
Welcome Back Readers! Thanks for stopping by again! There’s alot of emails that circulate during an election year, one of the most common ones this year relates to a real estate is that the federal health care legislation (affectionately called Obama-care) passed in March 2010 contains a 4.0% transfer tax on all real estate sold after 2012. You might be wondering if this is true or not. Well, in short the answer is no. There is no national transfer tax on all real estate.
But like all great myths, this one does have a small grain of truth to it. There is indeed a tax on certain real estate transactions specified in the bill, read on after the jump to find out more!
Welcome Back Readers! Thanks for stopping by again, I just wanted to take a minute and let you know about a new website from Fannie Mae. The site, www.KnowYourOptions.com is full of great information regarding forclosure and as the title would suggest, what your options are. Check it out and if you are thinking of selling your home to avoid foreclosure, call me, I will be happy to help you through!
Welcome Back Readers! Ok, so you’ve decided to buy a house. What do you need to do? How does the process work? I’m going to give you a simple 10 step approach to buying a home “the right way”.
Photo Courtesy of B&M Photography
To buy a house or not to a buy a house, that is the question. It’s a big decision, some would say due to the huge impact it can have on your lives it’s the biggets decision you’ve ever made. Some people will tell you to buy a house right away, others will tell you to wait a few years. These opinions vary between friends, family members, co-workers, even Mom and Dad might disagree on the right thing for you to do. Who’s right, what should you do?
Well, the short answer is that it’s completely up to you. You should rely on the advice of friends and family, their experiences can save you a lot of trouble, but in the end no one can make this decision but you and your spouse. As a Realtor, I get asked all the time by nervous buyers whether I think they are making the right decision and while I am happy to give advice, my answer is always the same, it doesn’t matter what I think, because in the end YOU will be living in whatever home you buy and YOU will be paying for it. For that reason and that reason alone, you need to tune out everyone else’s opinions and focus on what you want to do.
