As we approach the holidays, many Americans will likely attend various cocktail parties and other social events. As is common, the topic of real estate and home prices will likely be discussed. With this said, there is typically no shortage of opinions out there regarding real estate, real estate investing, and the overall future of the housing market. For many home buyers, their focus is largely on their budget, the latest listings, and the details of their upcoming move. Of course, they may also be concerned about the ups-and-downs of the housing market. A recent survey of real estate agents identified some of the biggest misconceptions in the housing market today. We discuss below so that you are ready for your next social event discussion.
The top real estate misconceptions
- Home prices will fall dramatically.: The top misconception among aspiring home buyers, according to real estate agents, is that home prices will significantly fall. Although the market has been cooling, most economists and real estate professionals do not expect a dramatic drop in home prices.
- This is not a good time to buy a home.: Although home prices have increased and mortgage rates are higher, buyers in the current market will likely have less competition for the tight inventory of homes for sale. This can lead to more room for negotiations with sellers and ultimately a better price.
- Sellers still expect multiple offers on their home.: Although bidding wars were common throughout 2021, we are not seeing the same levels of competition between home buyers in this market. A recent survey of real estate agents showed that 81% of their sellers expected multiple offers on their home.
- Sellers expect a sale price above market value for their home.: While sale prices above market value were common throughout 2021, the current market is not seeing this. 79% of real estate agents surveyed stated that their sellers expected a sales price above market value.
- Sellers expect a quick sale for their home.: Approximately 79% of real estate agents surveyed stated that their sellers expected a quick sale of their home. With the housing market cooling off this year, this is not necessarily always the case.
- Sellers do not see a need to reduce their price.: Unlike the 2021 housing market, price reductions are a common tactic in most markets. This year we have seen a return of price adjustments as the market has cooled off. Approximately 74% of real estate agents surveyed stated that their sellers did not see a need to reduce their asking price after being on the market for a while.
It is important for both buyers and sellers not to fall into the trap of believing various misconceptions that are typically present in all real estate markets. As always, it is important for both buyers and sellers to consult a local and knowledgeable real estate agent. As with any market, pricing a property competitively will result in a quick sale in this market. In fact, competitively priced listings are going under contract in 19 days nationwide. This is 10 days faster than they were prior to the pandemic.
Are you ready to buy or sell a house in South Florida? We can help. Contact Natasha at Live South Florida Realty, Inc. today! Be sure to also download the free Florida Home Search app for your smartphone or tablet as well.