Today’s Biggest Housing Market Myths: California Edition

When it comes to buying or selling a home, there’s no shortage of misinformation, especially in California’s housing market. It’s easy to get overwhelmed by myths that can hold you back. That’s why having a reliable real estate agent by your side is so important. They’ll help clear up common misconceptions and provide you with the facts.

Here are three myths that are circulating right now—and why you shouldn’t believe them.

1. Prices Will Crash, and I’ll Get a Better Deal If I Wait

Many people think waiting for a market crash will allow them to buy a home at a much lower price. However, that’s not likely to happen in today’s market. Unlike the crash of 2008, today’s market has a very low supply of homes available, not an oversupply. This makes it unlikely that prices will drop drastically.

In California, where demand often outpaces supply, the idea of waiting for a dramatic price drop isn’t supported by the data. Experts don’t predict a crash; instead, they foresee stable pricing due to ongoing high demand and limited inventory.

2. There Aren’t Enough Homes for Sale

While it’s true that inventory was very low during the pandemic, that’s no longer the case. The supply of homes for sale has been increasing, and while the market isn’t quite back to pre-pandemic levels, there are more options available than last year.

In California, especially in competitive areas like Los Angeles and the Bay Area, you’ll find a broader range of homes on the market now compared to just a year ago. Working with a real estate agent can help you find homes that fit your needs, even in a tight market.

3. I Need 20% Down to Buy a Home

One of the most persistent myths in real estate is that you need a 20% down payment to buy a home. This simply isn’t true. According to Fannie Mae, 90% of consumers overestimate how much they need for a down payment. The reality is that most first-time homebuyers are putting down around 6%, and many loans allow for even lower down payments—sometimes as little as 3.5% or even 0%.

In California, where home prices can be higher, it’s especially important to know you don’t need to save for a 20% down payment to enter the market. Depending on the loan program you choose, you may be able to buy a home with much less upfront.

The Role of a Real Estate Agent in Debunking Myths

If you’ve been putting off buying a home in California because of one of these myths, it’s time to talk to a real estate agent. They have the latest market data and can help you navigate through the noise. An expert agent can clarify misconceptions and provide personalized advice based on your financial situation and the local market conditions.

Bottom Line

The California housing market can feel complex, but you don’t have to navigate it alone. If you have questions about what you’re hearing or reading, let’s connect. Having a trusted real estate expert can help you make well-informed decisions.