The real estate world can be confusing, especially if you are buying your first house. Make sure you know the truth behind these common real estate myths to ensure happy home hunting!
- The Federal Reserve Controls Mortgage Rates – while the Federal Reserve can influence mortgage rates, they do not have any direct control over them. Credit spread, inflationary pressures, and global savings control mortgage rates.
- The Low Number of Houses Under Construction is a Bad Sign – in reality, the number of homes on the market is very high, so new home construction is not necessary. Builders cutting down on the amount of homes that they build can help to stabilize the market.
- People are Retiring and Moving into Smaller Homes, which will cause an excess of homes – many people who are looking to retire, or are already retired are not moving into smaller houses, they are staying put or moving into homes of comparable sizes.
Do you have a specific real estate question you need answered? Contact The Alan Shafran Group.