In 2024, the number of misconceptions about buying, selling, and owning a home has never been higher. Homebuilders and real estate agents have worked hard to debunk myths in recent years – for example, with current financing options, you don’t need a $20,000 downpayment to purchase a new home, and buying a townhome is no longer a depreciating asset. However, in the aftermath of the global pandemic and the local Georgia housing market increases, incorrect assumptions have been running rampant.

Here are three common myths about the 2024 real estate market in Georgia we at Paran Homes want to help clear the air about. As a new home shopper, you should know these as you enter the housing market.

Myth 1: The Housing Market Is Going to Crash

One of the most popular myths circulating about the 2024 housing market is the impending crash. According to Fannie Mae’s most recent Home Purchase Sentiment Index, consumer confidence with regard to buying a home is low, partially due to memories of the housing bubble from several years ago. It’s understandable why some prospective homebuyers may hold this belief, especially given the volatility in the market over the past few years. However, a closer examination reveals a more detailed scope of what’s actually going on.

Reality:

Just like how timing the stock market is ill-advised by financial experts and hedge fund managers, forecasting a housing market crash with certainty is nearly impossible. Various factors, such as economic indicators, interest rates, and housing supply, influence market trends and volatility. Currently, the majority of experts believe a housing market crash is unlikely in 2024 and the next several years based on current data.

“[There’s] just simply not enough supply. So the economics of supply and demand, if there’s a shortage, prices simply cannot crash.” – Lawrence Yun, Chief Economist at the National Association of Realtors

“The U.S. is currently between 2.3 million and 6.5 million units short of a healthy housing supply, according to Realtor.com. Even if something happened that caused a lot of homebuyers to drop out of the market, demand likely still couldn’t drop low enough to push prices down significantly.” (Business Insider)

In short, Supply is too far off from demand for there to be any significant crash in the coming years.

Myth 2: Renting Is Always Cheaper Than Buying a House

The debate between renting and buying has begun to reach a new audience, with the inexperienced advocating that the benefits of renting far outweigh buying a home in 2024. What are those supposed benefits? Maintenance and repair are primarily cited, even though repair is covered by warranty on a new Paran Home, and both are covered with the purchase of a townhome.

Reality:

The decision between renting and buying depends on individual circumstances, including the house’s location, financial goals, and long-term plans. While renting has a perception of flexibility for those who want to move every 12 months and lower costs during the first year of the lease (no downpayment or closing costs, all maintenance covered), renting comes without the stability and gains in equity owning a home brings.

Significant rent increases have been in effect throughout the country for years, and those looking to solidify their budget find that paying a mortgage is better for their peace of mind. According to Apartment List, the national median rent is around $250 per month higher than it was three years ago. The national median rent increased by 0.5% in April 2024 alone, yet those with fixed-rate mortgages pay no increase in principal & interest payments on their homes. The longer they stay, the more equity they accumulate. The longer you stay in a rental, the more equity you have given to your landlord, as grateful as landlords can be.

In short: Potential homebuyers should carefully assess their situation before making a decision. Keep in mind that land is one of the few things they’re not making more of, and you would be much happier keeping the equity you’ve paid for vs. donating that equity over even 5 years to someone you may have never even met.

Myth 3: It’s Too Difficult to Get Financing in Today’s Market

While it’s true many of our parents bought their home before credit scoring existed, with no downpayment, or monetary credit from the housing equivalent of the “Cash for Clunkers” program, safe finance options are more abundant than ever in 2024.

Reality:

The “Sign & Drive” financing that contributed to the housing bubble collapse is long gone, but Paran Homes has never advocated for that type of loan for our homebuyers. FHA-insured mortgages are available today, which take the best parts of the older B-paper loans (easy qualify, easy terms, easy down payments) and marry them with safer quality standards that don’t overextend borrowers or homeowners. Other options like VA loans or USDA loans have included homebuyers from various tax brackets and financial situations, so purchasing in a new community from Paran Homes is very obtainable!

The Bottom Line

Home prices are determined by two things: supply and demand.

There is a lot of pent-up demand in the housing market right now that has been kept at bay because of the affordability problem. But as affordability improves, more people will move forward with their homebuying plans.

Don’t miss out on purchasing the home you want because you’re too busy timing the market. Talk to a Paran Homes agent today about your options and ask about our current promotions that can save you money on your investment. We can’t wait to welcome you home!