I’ve been saying for several years that people don’t have much of a reason to move.
Yeah, everybody knows they can sell their house fast but where would they go? Everybody knows their house is worth a lot more than it was a few years ago but so is the house they’d want to buy. And then there are the interest rates. It is sort of hard to think about giving up your 3.25-3.75% rate and signing off on a new loan at 4.25-4.5%….even though I remember bragging about my 6.5% rate on my first house when all my friends were paying 7.25%.
Rates are back under 4% now.
I am thinking that we might start seeing more houses come on the market as people move on to bigger and better things. If there is one thing I know about real estate in America, it is that we all love to move to a bigger and/or better home. I mean, as soon as the economy picked up after the Great Recession, we flipped from a Buyer’s Market to a Seller’s Market overnight as people felt comfortable to buy the home they had been wanting for a while.
If that happens in the next few months, the headlines will read that it is a seller’s market fueled by the threat of a recession, but you and I will know the real reason. It’s the rates.