Fact Check February – Don’t Fall for These 7 Housing Myths
Misinformation about the housing market is everywhere. Some widely believed narratives are simply outdated. Here are seven myths to stop believing:
Myth #1 – Buyer demand is declining.
True in 2022-2023, but not anymore. Despite high mortgage rates, demand has stabilized and remains consistent with last year.
Myth #2 – There’s nothing under $300K.
Not true. In 2022, there were only 90 single-family listings under $300K in Maricopa and Pinal Counties; today, there are 534. Condo/townhome inventory has also surged, from 156 in 2022 to over 1,200 today.
Myth #3 – My income is too high for homebuyer assistance.
Many programs consider location, not just income. Some allow earnings up to $150K or have no limits at all. A knowledgeable loan officer can help you find savings.
Myth #4 – I must be a first-time buyer to qualify for assistance.
Not necessarily. HUD defines first-time buyers as those who haven’t owned a home in three years, certain divorcees, and even past mobile home owners.
Myth #5 – High mortgage rates make buying impossible.
Many sellers offer rate buy-downs, and some FHA/VA loans can be assumed at rates below 5%. Research can uncover creative ways to lower costs.
Myth #6 – Housing is in a bubble, and prices will crash.
Phoenix saw a price dip in 2022, but since then, prices have stabilized, with less than 2% appreciation year over year. Negotiations may shave 1-2% off list prices, but no major crash is looming.
Myth #7 – I’ll sell “as-is” with buyer incentives.
In a buyer’s market, “as-is” only works if the home is in excellent condition. Price and condition matter most—additional incentives depend on your market.
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Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2024 Cromford Associates LLC and Tamboer Consulting LLC
