Misinformation Fails to Stem Public’s Real Estate Plans

Homeowners who plan to put their properties up for sale this year are discounting much of the pessimism that has percolated through the nation’s press in past months—possibly because they are staying well-informed about real estate in Winchester. The sellers should be greatly encouraged by the report that headed The Hill’s ‘Finance’ section on Tuesday: “Survey finds Americans wildly misinformed on housing market.” 

The facts it presents go to reinforce the prospects for this season’s Winchester real estate market. It makes the case that fears that U.S. homebuyers are stampeding for the hills are “woefully” misplaced—on a variety of counts. Examples were cited from surveys by NerdWallet, the NAR^®, and Redfin: 

• Twenty-eight million Americans “plan to purchase a home” this year. Since fewer than six million homes were sold last year, that would constitute more than a fourfold increase. Of course, “planning” and “doing” always differ—but the notion that a steep drop in sales is inevitable doesn’t match personal itineraries.
• Those 28,000,000 potential prospects are determined to house-hunt despite the widespread belief that current mortgage rates are unusually disadvantageous. More than 60% of those sampled believe today’s rates “are unprecedented.” If the majority of those contemplate a purchase despite that misinformation, they should be further encouraged if they learn that at 6.15%, current rates are significantly lower than the 30-year average of 7.75%.
• Pessimism about the state of the housing market abounds, with two-thirds of Americans saying they expect “a crash.” That extreme differs from most well-informed opinion makers. As NerdWallet’s Holden Lewis points out, “a drop in home prices isn’t necessarily a crash,” while market experts at Redfin predict a U.S. drop of “no more than 4%.”

While a freefall in this spring’s Winchester real estate picture may seem highly unlikely, the persistence of widespread misinformation is noteworthy. One factor could be material: many potential house hunters start out with 2013 prices in mind, even though today’s median listings are significantly higher. Serious prospects will be better informed, of course. Call one of our agents for the latest verified Winchester results—the key data that inform successful buyers and sellers.