🏡 Real Estate Crash Coming? 10 Myths Busted!

Good afternoon, agents! ☀️ There’s a lot of talk about a potential real estate crash, and with all the noise, it’s easy to get caught up in the fear and speculation. But how much of what you’re hearing is actually true?

In this podcast, we’re busting 10 of the most common myths surrounding the real estate market today. Whether you're buying, selling, or simply staying informed, understanding the facts behind these rumors will give you the clarity you need to navigate the market with confidence.

Let’s separate fact from fiction and set the record straight! 🏡💥

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REAL ESTATE CRASH COMING? 10 MYTHS BUSTED!

You’ve seen the YouTube thumbnails: “BIGGEST CRASH EVER COMING!” or “SELL NOW BEFORE IT’S TOO LATE!” Most of this fear-mongering is designed to sell you something, not to help you. As real estate agents and brokers, you deserve better: facts, not fear. So, let’s roll up our sleeves and debunk the top 10 myths about a so-called housing crash.

Myth 1️⃣: We're Headed for a 2008-Style Crash
Fact: The 2008 crash was a perfect storm of bad lending practices, subprime mortgages, and an oversupply of homes. Fast forward to today: lending standards are tighter, and we’re facing a housing shortage, not a surplus. According to Harris Real Estate Daily, inventory levels are hovering around a 2.6-month supply—a far cry from the 10+ months we saw in 2008.

Myth 2️⃣: Rising Mortgage Rates Will Tank the Market
Fact: Sure, higher rates slow demand, but they don’t cause market crashes. History tells us that housing markets can thrive even when rates climb. We've pointed out that even with rates above 6%, home prices are holding firm in many areas because…you guessed it…we don’t have enough homes to meet demand.  Further, there are several effective ways to reduce the mortgage interest rate, from 2-1 buy-downs to paying points and fixing a lower, 30-year rate to utilizing builder incentives, so getting a better rate is not hard.

Myth 3️⃣: Homes Are Too Expensive for First-Time Buyers
Fact: Affordability is challenging, but first-time buyers are still making moves. FHA loans, down payment assistance programs, and creative financing options keep the dream alive. The National Association of Realtors reports that first-time buyers made up 32% of home purchases in 2023. That’s hardly a sign of a market on life support.

Myth 4️⃣: The Market Is Flooded With Unsold Homes
Fact: Flooded? It's more like a drought. Inventory is way below normal. A balanced market has a 6-month supply; we’re sitting at around 2.6 months nationally. Builders can’t keep up with demand, and existing homeowners are sitting tight, especially those with low mortgage rates.

Myth 5️⃣: Real Estate Is No Longer a Good Investment
Fact: Tell that to the millions of homeowners sitting on record equity. The Federal Reserve reports that homeowner equity is at an all-time high. Real estate has always been a solid long-term investment, and that hasn’t changed.

Myth 6️⃣: A Wave of Foreclosures Is Coming
Fact: Foreclosures are near historic lows. Why? Stricter lending standards and significant homeowner equity. ATTOM Data Solutions says foreclosure filings in 2023 were down 70% compared to the peak during the Great Recession. Homeowners aren’t underwater like they were in 2008.

Myth 7️⃣: Investors Are Driving Up Prices and Will Cause a Crash
Fact: Investors play a role, but owner-occupant buyers still rule the roost. CoreLogic reports that investors accounted for about 18% of home purchases in 2023. Most of these are small-scale investors, not giant corporations flipping entire neighborhoods.

Myth 8️⃣: Wait to Buy Until Prices Drop
Fact: Trying to time the market is like trying to catch a falling knife—you’re probably going to get cut. Home prices historically trend upward. Waiting for a mythical “bottom” could mean missing out on appreciation and getting stuck with higher interest rates.

Myth 9️⃣: High Prices Are All Because of Investors
Fact: Nope. High prices are due to good old-fashioned supply and demand. The real culprits are low inventory, high demand, supply chain issues, and rising construction costs. Investors are just part of the equation.

Myth 🔟: The Housing Market Is Totally Unpredictable
Fact: While we can’t predict the future with 100% accuracy, market trends are based on data. Inventory levels, interest rates, and demographic shifts give us a pretty clear picture. Tim and Julie Harris remind us: facts over fear, always.

BONUS ROUND: THE NUMBERS DON’T LIE 🟢

• 40%of U.S. homes are mortgage-free. That’s right—no mortgage, no problem.

• Of the homes witha mortgage, the average equity is about $315,000.

• 2%of mortgages have interest rates below 4% (thanks, low-rate era!).

• Foreclosure rates are down 70%from the Great Recession peak.

THE BOTTOM LINE

The housing market isn’t crashing. It’s evolving. Don’t let fear-based clickbait shake your confidence. Stick to the facts, educate your clients, and keep doing what you do best—helping people find their place in the world. Because at the end of the day, the real estate market doesn’t run on fear. It runs on fundamentals.

TAKE ACTION TODAY

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AND THAT'S A WRAP!

Your trusted mentors in real estate and community leadership,

—Tim & Julie Harris
Harris Real Estate Daily

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