Reply to Isn't trading up going to end as folks are priced out?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]There is an article that shows how the housing market is stuck because of these crushing mortgage rates. No one is going to give up their reasonable sub 3% rate for the crazy 5%+ rates[/quote]

What area? Homes are still going quickly in my neighborhood and frequently above asking. None of the new owners I’ve met are 1st time buyers, they’ve all sold and taken on the bigger mortgage. [/quote]

No PP, but instead of writing "no one one is going to give up their reasonable sub 3% rate" they should have written "no one smart is going to give up their reasonable sub 3% rate." Lots of fools get caught up in keeping up with the Joneses in the DMV, which often leads to poor financial decisions. My neighbors are leasing a Range Rover, lol. Because they don't have the money to buy one. [/quote]

We are in this position - one kid, a HS junior, in a house that we purchased, gutted and renovated 9 years ago, mortgage at 2.625%.  Our house is a rarity - a recent renovation that isn't huge, at least for our neighborhood (4 BR, ~2400 sq. feet).   We have toyed with various options in the next decade and into retirement - selling and buying a condo in the city after kid leaves for college, selling and buying two smaller places for retirement, etc.  But our incredibly low rate changes all that - we will be much better off staying put until we need to move.

No one should feel sorry for us, at all - this is not really a "problem" using any rational definition of the term.  But circumstances have forced a change to our plans, and more importantly, a normal-sized house suitable for a family of 4 in a great neighborhood within walking distance to wonderful schools won't be on the market in the near future.  This phenomenon, repeated over and over, limits supply, and makes it harder and harder for people to move up.  [/quote]

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