For many, the moment you decide to buy a home is when the myths start flying. From online misinformation to ill-informed friends, there seems to be bad advice everywhere. So, let’s dispel the major homebuying myths.
Wait for Prices to Crash
“That way, you’ll get a much better deal.” But a crash isn’t happening. Sure, home prices can go down; in July 2024, median home prices in the Dallas-Fort Worth market dropped by 1.7% compared to July 2023. Over that same period, the median home sale price was down an average of 2.2%. Dips, yes; crashes, no.
Finding the Right Home is Impossible
“There’s just not enough out there.” Well, the current housing supply says otherwise. It’s rising in DFW, up from a 2-month supply in June 2023 to a near-double 3.8-month supply in June 2024. These homes remain on the market longer; in the Dallas County market, homes stay available for an average of 37 days. Last year, the average was about 29 days. With more choices and more time to make your choice, your forever home is almost certainly out there.
I Need to Save 20% for a Down Payment
You could. But you may not need to. With an FHA loan, you might have a down payment as low as 3.5%. Considering a VA loan? That may have no down payment. Typically, first-time homebuyers – who make up about a third of homebuyers – put down 8%. Close to 25% of those first-time buyers get the money for the down payment as a gift or a loan from friends or family members.
Real Estate Agents Aren’t Necessary
“With today’s technology, I’ve got all I need on my phone.” Wrong. While online resources offer amazing access to the housing market, real estate agents bring assets you won’t find on an app. In-depth knowledge of local markets. An expert negotiator. Someone who can decipher complex paperwork and navigate tricky tasks such as home inspections. A buyer’s agent can help with these and more.
It’s Cheaper to Rent Than to Own
Maybe in the short term. Long-term, ownership usually makes more financial sense. As of September 2024, Dallas-Fort Worth rent averages about $1,400 a month for a 700-square-foot apartment. With rents rising every year. You could get a fixed-rate mortgage with a comparable monthly payment that will never increase, all the while building equity through home ownership.
Don’t let housing market myths dissuade you. Talk to one of the loan experts at the Decker Group to get the truth about buying a home. Call us at (972) 591-3097 or connect with us online.
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