Huh? Wouldn't there be a one-for-one match in the reduction in the number of buyers then? I can understand real estate agents crying about that because they get zero commission from people not moving, but a shortage is housing isn't caused by people not moving around - it is caused by the difference between new buyers and building.
If you play musical chairs with 20 kids and 19 chairs, but allow 15 to just sit rather than fight for a chair the competition is still the same for the other 5 kids fighting for 4 chairs.
If the existing homeowner feels "trapped" by their sub-3% mortgage and doesn't want to pay the current rates, what makes them think the new homebuyer wants to pay that same rate? Aren't they "trapped" in their current situation, too?
Perhaps they are renters who can't afford (or qualify) for a mortgage at the current rate. Perhaps they are still living in their parents' home an can't afford to buy at the current rate.
In any case, they're just as "trapped" as the homeowner with the sub-3% rate.
-PJ
A large realtor in my area said that they have 188 agents and 22 houses under their listing umbrella.
What they haven’t mentioned here is that with investment companies owning 25% of all single family homes, there is a huge shortage of homes for sale. That is what has kept home prices high despite interest rates skyrocketing.
I’ve done the comparison and with the 65% increase in house prices in this market over the last two years and the increase in interest rates, I would be paying TWICE per month what I’d have paid for the same house just a couple years ago. Pass.
I can live with higher prices or higher interest rates, not both. I’ll just sit until one of the two comes down significantly.