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Reducing prices requires increasing supply - but what is going to incentivize folks sitting on a 30year mortgage at 3% to sell? The Fed's low rate policy durin
by bhawks 3y ago
Reducing prices requires increasing supply - but what is going to incentivize folks sitting on a 30year mortgage at 3% to sell?
The Fed's low rate policy during pandemic and then the rapid rate rise has broken the housing market. There is no reason to sell and no reason to buy.
That's why you see a severe transaction drop but roughly no change in prices. It'll be this way for awhile.
- sofixa 3y ago> Reducing prices requires increasing supply Or reducing demand, as GP said, from companies withdrawing from the market.
- bhawks 3y ago2/3rds of single family housing is owner occupied. Half of the remaining are owned by 'mom and pop' landlords. So being very generous, maybe 10% of the supply is really counting on price appreciation versus income. If demand withdrawals, supply will as well.