Reply to Americans locked into lower mortgage rates have been increasingly unwilling to sell their homes.

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Yep we are the older people everyone likes to blame at the moment.  3000 sq ft house in a good school district, almost paid off.  more house than we need or want and we would love to downsize, but the way prices are, a smaller house would be more than we paid for our original house and with a mortgage would actually cost more than we are paying at the moment.  we don't want to stay put, but it doesn't make any sense to move. [/quote]

+1 this is us too. Real estate agent keeps pushing to sell house and take the cash but buying something now is more expensive. Renting a smaller place for more then our carrying costs to wait out the market also seems to not be a good move. [/quote]
Your real estate agent IS right (surprisingly!).

Assuming you sell your house today and net $500K (not unusual at all), you could put that in a HY savings account and get ~$2K/mo interest, [i]without[/i] touching your principal and without any carrying costs. You've just locked in your profit.

[img]https://i.ibb.co/cvBN3rn/Screenshot-2023-09-03-at-7-42-28-AM.png[/img]

I'm sure your argument is going to be, but we need a place to stay! You're right, you do. Now, do the math one more time in terms of hanging on to your house, vs realizing your profits today (assuming you [i]can[/i] sell, with today's market) and renting something lower cost (no, it won't be the same kind of house that you're selling, that's stupid) for a while. If you're not willing to do that, that's fine, others will be, because they can do the math as well.

Prices are set at the margin. A few sales in a neighborhood (up or down) set the prices for the whole neighborhood. You want to sell, when nobody's selling, not when everybody's heading for the exit.[/quote]

Actually, almost no one will be willing to do this, as it is quite risky for effectively no financial benefit.[/quote]

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