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The problem is that people who could afford it, bought homes at a higher price. They will not sell it for less than they bought it for. Combined with high inter
by darth_avocado 3y ago
The problem is that people who could afford it, bought homes at a higher price. They will not sell it for less than they bought it for. Combined with high interest rates, total cost of ownership is a through the roof.
This wouldn’t have been a problem if this was an asset that everyone doesn’t need and the supply was more.
- cykros 3y agoIt's not that they won't sell at a loss. It's that they won't sell at a loss AND take on a new mortgage with a rate that is 2-3x what their existing mortgage costs to service. Owning a home creates losses of its own. I'd know, with my water heater going out, furnished basement flooding in a freak incident, and a tree falling on my roof, all in the same year. If I could get 3% on a different home, it wouldn't take a ton of enticing. Not doing it at 7% for anything though.