4 ms·
People say housing prices are down but the lack of inventory is driving it back up. No one wants to sell and get a mortgage that could be double or almost tripl
by wil421 4y ago
People say housing prices are down but the lack of inventory is driving it back up. No one wants to sell and get a mortgage that could be double or almost triple their existing rate.
2 houses in my neighborhood sold for around $50k over asking. My neighbors are moving to another state and had 5 bids.
Both were almost $75-100k over Zillows estimate, which was quickly updated almost immediately based on the asking price.
- vanilla_nut 4y agoIn some markets, the last 2-3 years of price increases put a LOT of folks over the $250,000 (x2 for married couples) gains deduction. I wonder how many folks are hesitant to sell at a price that'll cost a serious amount of taxes if they're going to end up buying a new overpriced house anyway. Folks in major metro areas could see some serious costs due to those taxes.
- wil421 4y agoI would bet most people across the US are not going to hit the 250k or 500k mark. How much more is it 5%? I’m not sure, 5% of 500k is only $25k more in taxes. I don’t have enough time to parse this data but it is very interesting to me that my state’s home prices has increased 2% more than California since 1991. https://advisor.visualcapitalist.com/growth-in-u-s-house-prices-by-state/ https://advisor.visualcapitalist.com/growth-in-u-s-house-pri...
- somewhereoutth 4y agoI'm not convinced by this argument - presumably the people sitting on houses are also not buying houses, so unless they mostly would be downsizing, the lack of supply should be matched by a lack of demand. Though this does mean a lack of liquidity in the market (in the general sense of lack of trading), so maybe prices are 'sticky' or find their correct supply vs demand level in jolts.