Top 5 Myths (and Truths) About the Current Housing Market

As the founder of an independent brokerage and the inventor of the Guaranteed Cash Offer program, I have a front-row seat to real-time housing market trends. And what I'm seeing today is getting farther and farther away from what I'm hearing anecdotally and seeing in the media.

Myth #1: "We're Still in a Seller's Market."

Especially in my home area of the Midwest, this might be the biggest myth floating around right now. I still hear people talk about our "hot market," and they assume that if they list their house on the open market, they'll have multiple offers by the weekend and sell above asking price.

Many sellers are still pricing their homes based on what happened during the pandemic boom. They think inventory is still scarce and buyers are still desperate.

The Truth: Even taking regional differences into account, we've largely shifted to a buyer's market faster than most people realize. According to Redfin, my home state of Minnesota had nearly 19,000 properties for sale in April, up 7.6% year-over-year. In the meantime, buyer demand has essentially flatlined, with only a 0.8% increase in homes sold. When supply is growing and demand is stagnant, that's not a seller's market anymore. Some additional perspective: Average days on market have increased 80% since the peak of the seller's market in April of 2022.

Myth #2: "The Market Data Tells the Whole Story."

People read headlines about median home prices or look at monthly market reports and assume that if prices are still up year-over-year, the market must still be strong.

The Truth: Most reports are based on closing data, which means there's a 30–60 day lag between what's actually happening and what gets reported. I track real-time buyer activity, showing schedules and offer patterns every day, and I can tell you the market is shifting much faster than most people realize.

Myth #3: "Cash Offers Leave Money on the Table."

Many real estate agents tell homeowners that cash offers are like "giving your house away for pennies on the dollar." Here's the reality on the ground: We had a homeowner turn down our $580,000 Guaranteed Cash Offer on their house and list it on the open market. Buyers rejected it. They had to lower the price multiple times, and they eventually sold it for $450,000, half a year after getting our offer.

In addition to losing $130,000, they had to pay commissions and closing costs, as well as six months of mortgage and other holding costs. They left money on the table by NOT saying yes to our Guaranteed Cash Offer.

The Truth: We've seen more demand for Guaranteed Cash Offers in the last two months than at any time in the program's eight-year history. Unlike the homeowners in the example above, more people are seeing the value in certainty, speed, and convenience. Just this week, one of our callers said, "I can either sell my house to you, or I can deal with half a dozen contractors that need to come out and fix things."

Myth #4: "The Baby Boomer Impact Is Still Years Away."

This one is cut and dried: Most people acknowledge that baby boomers are aging, but they think the impact on housing is still somewhere in the future.

The Truth: Based on the calls we're getting from adult children dealing with properties they've inherited or need to sell so their parent(s) can move to senior living, the baby boomer effect is here. Just recently, "Erin" called us and said, "My dad's house is in a condition where selling 'as is' would make sense for him. As his child, being able to have time to take what he wants and not having to go through renting a dumpster and cleaning out the house, that is appealing!"

Myth #5: "Cash Offers Are Only for Desperate Sellers or Damaged Properties."

A stigma exists that cash offer programs are only for people in financial distress or houses that are falling apart. This shouldn't be surprising since many acquisition companies advertise themselves this way. But is it true?

The Truth: "I was [a real estate agent] for a number of years, so I've got a pretty good idea of how this thing works," Robert told us recently. "I don't want to hassle with putting it on the market and trying to get it all cleaned up and, well, you know the deal."

Think about that. Real estate agents themselves are now calling us to get Guaranteed Cash Offers on their own properties! As Robert said, they know the "hassle" of listing on the open market better than anybody. I can't say it any better than that.

The Bottom Line

Success in today's market means adapting to a new reality, not clinging to outdated strategies from the pandemic era. The market rewards speed, certainty, and smart decision-making. If you recognize that, you'll thrive. If you don't, you'll be wondering what happened.

Kris Lindahl is the founder and CEO of Kris Lindahl Real Estate and the inventor of the Guaranteed Cash Offer program.