Are you familiar with the saying: don't accept everything you hear as gospel? This rings particularly true if you're contemplating about stepping foot into the real estate market. There's a fair share of misleading information out there. Ensuring you have a reliable source for accurate information is crucial.

Teaming up with a knowledgeable real estate agent can provide you with clarity on common misunderstandings, supported by research-based facts. Let's debunk some widely held misconceptions together.

1. I'll Score a Bargain Once Prices Plummet

If you've been lead to believe that home prices are set to tumble down, it's time to examine the reality of the situation. While prices fluctuate depending on the local market, an abundance of data from various sources indicates that a crash is unlikely. The 2008 housing market collapse was a result of a severe oversupply of homes. Presently, the market is facing a shortage of homes for sale, making for an entirely different landscape (refer to the chart below):

Therefore, if you're banking on a price drop to snag a great deal, it's important to recognize that current data does not predict a market crash. Waiting may not yield the expected payoff.

2. I Won't Find Suitable Homes to Purchase

If the anxiety of not finding the right home is holding you back from making a move, it's time to have a chat with a seasoned real estate agent. Over the year, the number of homes available for sale has increased. Realtor.com provides data that puts this into perspective. While the number of homes on the market is still less than what we would see in a more typical year like 2019, the inventory is higher than what it was last year (refer to the graph below):

So, if you're still haunted by the news of record-low supply during the pandemic, you can breathe a sigh of relief. While the market isn't completely back to normal, inventory is moving towards a healthier balance. With improving options, this myth that finding a home to purchase is next to impossible can be laid to rest.

3. I Must Save Up a 20% Down Payment Beforehand

A common misbelief is that a 20% down payment is necessary to buy a home. To illustrate the prevalence of this myth, Fannie Mae states:

"Approximately 90% of consumers overstate or are unaware of the minimum required down payment for a typical mortgage." Looking at data from the National Association of Realtors (NAR), it's clear that most homeowners aren't putting down as much as commonly believed (refer to the graph below):

First-time homebuyers typically only put down 6%, which is significantly less than the assumed 20%. If you're eyeing the graph and noticing that repeat buyers are closer to the 20% mark, remember that it's only because they can utilize the equity built up in their current home for a larger down payment on their next purchase.

This evidence highlights that a 20% down payment isn't a necessity, unless specified by your loan type or lender. Many people put down considerably less. Moreover, depending on your home loan type, you might only need to put down 3.5% or even 0%. Therefore, if you're a first-time homebuyer, you likely don't need to save as much for your down payment as you've been led to believe.

The Role of an Agent in Debunking Misconceptions

If these myths have caused you to press pause on your moving plans, it's time to reach out to a trusted agent. An experienced agent has access to more data and facts to reassure you and help dispel any misconceptions that might be hindering your progress.

Final Thoughts

If you're unsure about what you're hearing or reading, don't hesitate to reach out to a real estate agent. You deserve to have a trustworthy individual who can provide you with the facts.