Today’s Biggest Housing Market Myths
Have you ever heard the phrase: don’t believe everything you hear? That’s especially true if you’re thinking about purchasing for selling a home in today’s Santa Fe housing market. There’s a lot of misinformation and confusing headlines. And right now, making sure you have someone you can go to for trustworthy accurate information is beyond important.
As a engage a full time experienced Realtor that knows the data and recent market stats, I 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.
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I’ll Get a Better Deal Once Prices Crash
If you’ve heard home prices are going to come crashing down, it’s time to look at what’s actually happening. 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 prices crashing. Across the board, there’s an undersupply of homes for sale today in the national market. 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 no crash on the horizon, and so waiting isn’t going to pay off the way you’d hoped. In fact, in the past five years, homes in New Mexico have appreicated by a whopping 60.1 percent!
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I Won’t Be Able To Find Anything To Buy
If this nagging fear about finding the right home if you move is still holding you back, you probably are only looking at Zillow. Throughout the year, the supply of homes has grown, including in Santa Fe. 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 (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 And that means as your buying options have improved, you can let go of this now outdated myth because finding a home to buy won’t feel quite so impossible anymore. You can easily search here for opportunities.
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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 home buyers 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 zero percent 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. It may be time for a consultation with a local lender. Let’s talk so I can provide some referrals.
My Role in Fighting Misconceptions
If you put your move on pause because you heard one or more of these myths yourself, it’s time for us to have a consultation. My focus is always on your situation and the a deeper look into our market and your neighborhood facts, can make a difference in your next move.
Bottom Line
If you have questions about what you’re hearing or reading, let’s connect. You deserve to have the facts! Just call or text me at 505.660.4541 for a consultation today. Emily Medvec