Buyers are looking at price, not upgrades. Pretty soon, sellers will be competing with brand new home price drops, so renovations probably don't make sense... just price lowest you can. Also, while many home owners have 3% rates, 40% of homes are owned by investors that will likely be forced to sell if the prime spring season does not materialize.... they can only hang on for so long.... it just takes a few desperate sellers to start it all...
I strongly disagree with "they don't want to give up their low interest mortgage. Actually, they bought their house in a bigger fool's market. They were very big fools buying at crazy high prices and expected a bigger fool to pay even more. Seventy five percent who bought a house in 2021 and 2022 have buyer's remorse. A lot of them hope to sell the house before it goes "underwater". So, they hold off as long as they think some "uptick" on price will happen to minimize their loss. When they see the mortgage headed "underwater" scenario playing out, they will move fast to stop from losing bigger. This will result in fast decline of price causing chaos in the market. Anyone who bought after June 2021 will have a big problem. Even those before will have to face the bank asking them for a "balloon payment" to bring the mortgage requirements so the bank won't lose any money on the deal.
Historically low is one way to spin it, they're at 7.5, they were historically low at 2.5-3. now they're historically medium, last time they were this high was 2005 which was almost 20 years ago
Buyers are looking at price, not upgrades. Pretty soon, sellers will be competing with brand new home price drops, so renovations probably don't make sense... just price lowest you can.
Also, while many home owners have 3% rates, 40% of homes are owned by investors that will likely be forced to sell if the prime spring season does not materialize.... they can only hang on for so long.... it just takes a few desperate sellers to start it all...
I strongly disagree with "they don't want to give up their low interest mortgage. Actually, they bought their house in a bigger fool's market.
They were very big fools buying at crazy high prices and expected a bigger fool to pay even more. Seventy five percent who bought a house in 2021 and 2022 have buyer's remorse.
A lot of them hope to sell the house before it goes "underwater". So, they hold off as long as they think some "uptick" on price will happen to minimize their loss.
When they see the mortgage headed "underwater" scenario playing out, they will move fast to stop from losing bigger.
This will result in fast decline of price causing chaos in the market. Anyone who bought after June 2021 will have a big problem. Even those before will have to face the bank asking them for a "balloon payment" to bring the mortgage requirements so the bank won't lose any money on the deal.
50% off this year
Historically low is one way to spin it, they're at 7.5, they were historically low at 2.5-3. now they're historically medium, last time they were this high was 2005 which was almost 20 years ago
#housingmarket #recession