After a brief rebound in February, sales of existing homes just keep going lower and lower:
In January 2021, existing homes sold at an annualized rate of 6.6 million. They've fallen 42% since then, due largely to higher interest rates. Unless you can pay cash, selling your home and moving to a new one means a big increase in your mortgage as you trade your old 3% loan for a shiny new 8% one.
The number is dropping but if you put your home on the market the buyers will pound immediately with offers if you price it appropriately and have it in good condition.. My parents house had 2 offers after 3 days on the market ended up taking the one that was over $20,000 more than the asking price.
Sales were extra high for a couple of years so... revert to mean? If you moved in 2021 or 2022 you sure don't need to move again. Why doesn't Mr. Drum move?
For what it's worth, my first mortgage was 10.6% back around 1990. Terrible!
Most mortgage owners are not selling because they would pay higher interest rates on new mortgages. They are not selling because there are no homes to purchase. Banks and private equity firms have consumed the inventory of units and made them high priced rentals. Buyers who want to purchase these domiciles to make them homes have to compete with institutional buyers within a dwindling market. A market allowed to be manipulated by institutions who have no stake in ensuring Americans have decent places to live at a reasonable cost.
From the Census data, it looks like median price hit a bottom in the second quarter -- https://fred.stlouisfed.org/graph/?g=1bEyr -- and when you separate the median sales price by type of financing (or cash) -- https://fred.stlouisfed.org/graph/?g=1bEyM -- you start to see what I suspect is a rise of investors (private equity?) buying up inventory.