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 And that means as your options improve, you can let go of this now outdated myth because finding a home to buy won’t feel quite so impossible anymore.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
