Today’s headlines are designed to be scary, including those about the housing market. At this hour, it’s more important than ever to have a real estate expert help you separate fact from fiction, and how to truly understand today’s shifting market.
Myth #1: Home Prices Are Going to Fall
News clips use the following words regarding home prices that cause more confusion than clarity: appreciation, depreciation, deceleration. The real news, per Real Estate and Economic experts is as follows:
- A decline in home prices is unlikely.
- Higher mortgage rates coupled with more inventory will lead to slower home price growth.
- Price appreciation will continue, at a gradual pace (will continue rising; will not fall).
Myth #2: The Housing Market is in a Correction
According to Forbes: “A correction is generally agreed to be a 10% to 20% drop in value from a recent peak.”
Home prices are still appreciating which is projected to continue, just at a slower pace. The market is not in correction, as prices are not falling. It is actually moderating, compared to the last 2 years that were record-breaking in all ways.
Myth #3: The Housing Market is Going to Crash
Experts begin busting this myth by reminding that today is nothing like 2008. Lending standards have tightened significantly since then; credit lending is not expected to crash. Homebuyers are much more qualified to borrow money today, as they have been for the last decade.
No matter what you’re hearing about the housing market, it’s important to connect with an experienced real estate expert - one that knows the trends, history, and all the market’s ins and outs, and can help you clearly understand it all.