If you need assistance, please call 703-743-4410

Sort Out Fact from Fiction With the Aid of a Real Estate Professional

Thursday, August 4, 2022   /   by Laura Larson

Sort Out Fact from Fiction With the Aid of a Real Estate Professional

There are likely some headlines regarding the housing market that you have seen or heard if you keep up with the news. Fact from fiction can be difficult to distinguish when the real estate market is changing. An experienced real estate agent can help in this situation. So that you can truly comprehend the market today and what it implies for you, they can assist you to make sense of the headlines.

Here are three widespread housing market falsehoods you may have heard, along with the professional analysis that puts them in a more accurate perspective.

Myth 1: Home Prices Are Going To Fall
The idea that property prices are about to plummet is one urban legend that many purchasers may have seen or heard. This is due to the fact that headlines frequently describe what's happening with prices using comparable but different phrases. You may currently be seeing some of the following:
- Appreciation, or an increase in home prices.
- Depreciation, or a decrease in home prices.
- And deceleration, which is an increase in home prices, but at a slower pace.

The fact is, experts aren’t calling for a decrease in prices. Instead, they forecast appreciation will continue, just at a decelerated pace. That means home prices will continue rising and won’t fall. Selma Hepp, Deputy Chief Economist at CoreLogic, explains: “...higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”

Myth 2: The Housing Market Is in a Correction
Another common myth is that the housing market is in a correction. Again, that’s not the case. Here’s why. According to Forbes: “A correction is a sustained decline in the value of a market index or the price of an individual asset. A correction is generally agreed to be a 10% to 20% drop in value from a recent peak.”

As mentioned above, home prices are still appreciating, and experts project that will continue, just at a slower pace. That means the housing market isn’t in a correction because prices aren’t falling. It’s just moderating compared to the last two years, which were record-breaking in nearly every way.

Myth 3: The Housing Market Is Going To Crash
Some headlines are generating worry that the housing market is a bubble ready to burst. But experts say today is nothing like 2008. One of the reasons why is because lending standards are very different today. Logan Mohtashami, the Lead Analyst for HousingWire, explains: “As recession talk becomes more prevalent, some people are concerned that mortgage credit lending will get much tighter. This typically happens in a recession, however, the notion that credit lending in America will collapse as it did from 2005 to 2008 couldn’t be more incorrect, as we haven’t had a credit boom in the period between 2008-2022.”

During the last housing bubble, it was much easier to get a mortgage than it is today. Since then, lending standards have tightened significantly, and purchasers who acquired a mortgage over the last decade are much more qualified than they were in the years leading up to the crash.

Bottom Line
No matter what you’re hearing about the housing market, trust the experts and partner with Laura Larson now. When you do, you’ll have a knowledgeable authority on your side that knows the ins and outs of the market, including current trends, historical context, and so much more.
Larson Fine Properties
Laura Larson
7294 Joffa Circle
Warrenton, VA 20187

The data relating to real estate for sale on this website appears in part through the BRIGHT Internet Data Exchange program, a voluntary cooperative exchange of property listing data between licensed real estate brokerage firms in which Larson Fine Properties participates, and is provided by BRIGHT through a licensing agreement. The information provided by this website is for the personal, non-commercial use of consumers and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Some properties which appear for sale on this website may no longer be available because they are under contract, have Closed or are no longer being offered for sale. © 2022 BRIGHT, All Rights Reserved Information Deemed Reliable But Not Guaranteed. Data last updated: December 2, 2022 5 PM.
This site powered by CINC: www.cincpro.com