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Nobody wants to sell right now. Partly because the demand isn’t there, partly because the prices are down a little, but mostly because they don’t want to swap a
by slashdev 3y ago
Nobody wants to sell right now. Partly because the demand isn’t there, partly because the prices are down a little, but mostly because they don’t want to swap a 3% mortgage for a 7% mortgage. I wouldn’t want to sell either in that scenario.
If you want a comparable place, your monthly payments are going to nearly double. Not many families can absorb that. You could sell and rent, but most people don’t want to do that, it feels like going backwards.
Ironically this means new construction is doing pretty good. They’re offering discounted mortgages and it’s basically the only option for someone wanting to go from renting to buying.
- toomuchtodo 3y agoAlso, if you sell and rent, your housing payment is no longer locked in. You will be exposed to annual rent increases, likely exceeding any annual wage/earned income cost of living bump. As you mention, new construction is the best deal for folks, as those builders have to move units to remain in business.
- chiefalchemist 3y agoMakes sense. No sense getting (pre-approved for) a mortgage if there's not enough inventory. Also, I would imagine banks have to be more conservative as prices have yet to full correct (i.e., fall). They don't a loan that the asset can't cover.