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I guess I was surprised by the increase mentioned in the article. Rereading, it says: “The median home sale price, external in the US has jumped by nearly 30%
by dan-robertson 2y ago
I guess I was surprised by the increase mentioned in the article. Rereading, it says:
“The median home sale price, external in the US has jumped by nearly 30% since the end of 2019”
So I guess you could have the increase due to Covid effects (or whatever else happened around then) and then seller hesitancy due to high interest rates, even though most potential sellers don’t stand to lose much.
- mlrtime 2y agoSellers do have much to lose. I think you're saying they have 30%+ in equity so why not sell and use it? Well they have 30%+ equity AND low interest rates. If they sell, they need to buy again at a higher interest rate. So they can sell at a profit but then monthly payments will be higher. Anyway, this is only 1 scenario. Urban areas are hit hard NYC/SF and sellers are sitting out waiting for recovery, so they rent them out.
- dan-robertson 2y agoMy claim about ‘not losing much’ was more that many sellers would have had the property since before 2019 so in some sense they could feel like they didn’t lose anything if they just forget the 30% rise since 2019. But I guess you’re right about many not wanting to lose long mortgage terms at low rates (this does feel like a US-specific thing though hard to change in the short term as mortgages would have been priced based on the current rules)