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The problem is that we've been spoiled with crazy low interest rates for years now. I have a hard time seeing lots of people being motivated to sell a primary r
by thr0wawayf00 4y ago
The problem is that we've been spoiled with crazy low interest rates for years now. I have a hard time seeing lots of people being motivated to sell a primary residence with rates rising like they are.
- api 4y agoPeople might look at houses as homes instead of financial instruments. Wow.
- ianai 4y agoDeath, divorce, and other major life events don’t wait for opportune market conditions.
- thr0wawayf00 4y agoBut that was true before the rate hikes and yet the Fed still wasn't happy with the housing supply. There aren't more people dying and going through a divorce now that we've gotten the .75% hike.
- foogazi 4y ago> and yet the Fed still wasn't happy with the housing supply. Why would this be a Fed concern at all ? At most they can affect the demand side
- thr0wawayf00 4y agoFrom the article: "It's clear that Powell hopes the housing cooldown caused by rising mortgage rates will help to push inventory levels up. " The Fed wants housing prices to fall and is hoping this will bolster housing supply in the short term since building inventory takes a lot of time.
- ianai 4y agoA quick google will give you an idea of why people decide to sell their houses. It's generally got nothing to do with interest rates and everything to do with personal factors and a huge seasonality factor. People prefer to sell in the summer, and sellers make the worst returns in the winter months.
- nytesky 4y agoProp 13 has distorted housing market in Californian by fixing taxes; I could imagine extraordinarily low fixed rates would act similarly.
- azemetre 4y agoIf people lose their jobs or relied on margin to pay for their needs, they will absolutely sell their primary residence. Especially if you have zero cushion to weather any shock event.