Today's Biggest Housing Market Myths Dispelled by Real Estate Experts

Have you ever heard the saying: don’t believe everything you hear? That’s especially true when it comes to today’s housing market. There’s a lot of misinformation floating around, which can make the process of buying or selling a home feel overwhelming. Now, more than ever, having a trusted real estate agent by your side to provide accurate, research-based insights is crucial.

If you partner with a real estate agent, they can clear up some common misconceptions and reassure you by backing them up with research-driven facts. Here are just a few misconceptions they can help disprove.

1. I’ll Get a Better Deal Once Prices Crash

One of the most persistent myths is that waiting for a price crash will get you a better deal. However, the data paints a different picture. Unlike the 2008 crash caused by an oversupply of homes, today’s market is experiencing a shortage of inventory. This means home prices are unlikely to drop significantly. If you're waiting for a crash, you might be waiting in vain, as the current market fundamentals are strong, and demand still outpaces supply. (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.

2. There Are No Homes Available for Sale

While inventory levels are not back to pre-pandemic norms, the housing supply has been increasing throughout the year. Realtor.com data shows that inventory is higher now than it was last year, meaning more options are available to homebuyers. If you’ve been hesitant to start your home search due to fears of limited supply, now is the time to reevaluate. (see graph below):

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 And that means as your options improve, you can let go of this now outdated myth because finding a home to buy won’t feel quite so impossible anymore.

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 (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.

This goes to show you don’t have to put 20% down, unless it’s specified by your loan type or lender. Many people put down a lot less. Not to mention, depending on the type of home loan you get, you may only need to put 3.5% or even 0% down. So, if you’re buying your first home, you likely don’t need nearly as much for your down payment as you may think.

How Real Estate Agents Help You Navigate Market Misconceptions

If these myths have been holding you back, now is the time to reach out to a knowledgeable real estate agent. As your go-to real estate agent, I’m here to provide accurate information and help you make informed decisions. Whether it’s pricing, inventory, or financing, I have the data and experience to clear up any myths that might be holding you back from achieving your real estate goals.

Bottom Line

If you’ve paused your home search or sale because of these myths, let’s talk. I’m Beth Van Zee, and I’m committed to helping you make informed decisions with confidence. Contact me today to get started on your real estate journey with facts, not fiction.