4 ms·
The sellers can’t sell either because the next house will have a disproportionate loan amount compared to what we’ve been paying. I’m in this situation and it i
by lotsoweiners 4y ago
The sellers can’t sell either because the next house will have a disproportionate loan amount compared to what we’ve been paying. I’m in this situation and it is just keeping inventory low and listing prices high (for the few houses on the market).
- sumedh 4y ago> The sellers can’t sell either because the next house will have a disproportionate loan amount I dont have the numbers but most houses dont have loans specially old people houses who want to downsize or kids want to sell because their parents have paswed away. On the other hand most majority of buyers need loans which is expensive in a high interest scenario.
- nmfisher 4y agoI don’t think that’s true. Recent (2020) stats at https://www.abs.gov.au/statistics/people/housing/housing-occupancy-and-costs/latest-release https://www.abs.gov.au/statistics/people/housing/housing-occ... “…from 1999–00 to 2019–20, the percentage of Australian households that own their own home: … Without a mortgage decreased from 39% to 30%. With a mortgage increased from 32% to 37%.” And that’s only talking about owner-occupiers, not investment properties, which I suspect would overwhelmingly have mortgages.
- sumedh 4y agoWhy would investment properties be selling when rents are going up? You graph actually proves my point, amount of people with mortgages is increasing aka buyers need loans while old people who are selling who bought their properties 20-30 years back dont have loans.
- dalyons 4y agoThat’s not how it works in Australia (what this thread is commenting on). All mortgages are variable , with a short fixed term of 2-6 years.