There are three myths currently circulating around the market that we want to put to rest today.

Want to sell your home? Get a FREE home value report
Want to buy a home? Search all homes for sale

There are several myths going around about the real estate industry, but today we want to focus on three that have been pervading the market lately.

1. We are heading toward a real estate bubble. Home prices have appreciated over the last six years both nationally and here in the St. George market. We’re very close to the peak of the market, which is where the bubble burst last time.

Part of the misconception here is that people tend to relate the real estate market peaking with a resulting economic crash. The reality is that we have a lack of inventory in the market; the last time we hit a real estate bubble, we had a six-month supply of homes for sale. Right now in St. George, we only have three months of supply.

Supply and demand are what’s driving the prices at the moment. From where we stand, we are not in a housing bubble.

2. Affordability is going to become a widespread issue. Many believe that we’ll soon reach a point where people just can’t afford to buy a home. When it comes to purchasing a home, the first thing you should do is contact a lender to get a good idea of what you can qualify for.

From where we stand, we are not in a housing bubble.

Rising rates might affect entry-level homebuyers more than others, but looking at the market from a historical perspective, until rates hit 6%, we likely won’t run into widespread affordability issues. Nationally, the average rate is 4.59%. 

3. The real estate market is slowing to a crawl. Last year, many people who had previously been renting their homes decided to fulfill the American dream and purchase their first homes, a lot of which were homes in the $250,000-range. Those homes flew off the market.

Now, the market has slowed down a little, but it’s nowhere near being a dead market. We have a little bit less inventory this year than last year, but real estate markets do fluctuate. We just have to ride the tide and come out on top—there’s a home out there for every family, and a family for every home.

If you or anyone you know are looking to buy a home in the St. George area, please feel free to reach out to us. We’d love to hear from you.