Have you ever heard the saying, “Don’t believe everything you hear”? This is especially true when it comes to buying or selling a Triangle Area home in today’s housing market. With so much misinformation floating around, it’s essential to rely on a trusted source for accurate information.
By partnering with a real estate agent, you can dispel some of the most common misconceptions and get clarity backed by research-driven facts. Here are a few myths they can help debunk:
1. I’ll Get a Better Deal Once Prices Crash
Many people believe home prices are about to crash, but the data tells a different story. While local markets may vary, a market crash is not on the horizon. In 2008, there was an oversupply of homes, which led to the price crash. Today, we have the opposite problem—there’s a significant undersupply of Raleigh homes for sale. This means waiting for prices to drop likely won’t get you the deal you’re hoping for (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. I Won’t Be Able To Find Anything To Buy
If you’re worried about not finding the right Triangle Area home, it might be time to check in with Linda Craft Team Realtors. Inventory has been improving over the past year. Although it’s still below pre-pandemic levels, it has risen compared to last year, giving you more options. So, if you’ve been held back by the idea of low inventory, know that this myth is becoming outdated, and today’s housing market is moving in a healthier direction (see graph below):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 And that means as your options improve, you can let go of this now outdated myth because finding a home to buy won’t feel quite so impossible anymore.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 Need a 20% Down Payment
The belief that you need 20% down to buy a Triangle Area home is one of the most persistent myths out there. Fannie Mae reports that:
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 typically put down around 6%, which is much lower than the 20% many believe is required. If you’re focused on the fact that repeat buyers often put down closer to 20%, it’s important to remember that’s usually because they’ve built up significant equity in their current home, which they can use for a larger down payment.
This shows that a 20% down payment isn’t necessary unless it’s required by your loan type or lender. Many buyers put down much less. In fact, depending on your loan, you might only need 3.5% or even 0% down. So, if you’re purchasing your first Raleigh home, you probably need far less for a down payment than you originally thought.
How an Agent Can Help Combat These Myths
If you’ve put your plans on hold because of any of these misconceptions, it’s time to speak with Linda Craft Team Realtors. We have the data, insights, and expertise to provide you with the facts and guide you through your Triangle Area home buying or selling process with confidence.
Bottom Line
If you’re unsure about what you’ve heard regarding the housing market, contact Linda Craft Team Realtors. It’s important to have someone you trust to give you accurate information and help you make informed decisions.