Common Misconceptions in Today's Real Estate Market

Currently, we are seeing some interesting behavior from our clients who are searching for homes. Some think a crash is right around the corner, while others believe sellers will accept lowball offers. How crazy is that compared to just 90 days ago?

Here are a few misconceptions in the housing market right now:

1. Buyers believe prices will continue to drop rapidly and are waiting for the perfect time to buy.

   If that happens, sidelined buyers will start jumping back in to outbid one another and drive up the competition once again, which, in turn, will drive up prices.

2. Sellers think they should wait for rates to come down before listing their homes to maximize the buyer pool and create more competition.

   Unfortunately, rates probably aren't coming down to 5% for a while. Rates are likely to stay elevated until inflation stabilizes a bit. Personally, I don't see rates coming down to 5% for another year or two, but I don't have a crystal ball. Are you willing to wait that long to sell?

3. Waiting for prices to come down.

   Studies say that 50% of homeowners are equity-rich right now, meaning they own their home free and clear, making them unwilling to offer severe discounts. So the question for buyers is: How long are you willing to wait to buy?

In reality, you can't time this market. If you and your family want or need a new home, then we can make it happen for you. There are also many creative lending products available to help minimize costs at the beginning of the transaction, allowing you to reposition yourself and still buy that perfect property.