There seems to be a trend emerging since the pandemic that home sellers are only willing to sell at the right price; otherwise, they will delist their home. It’s easy to say these sellers are simply being stubborn, however, many seem to think sound economics are in play.
In episode #47 of the RiskWire Webcast, Chief Economist, Eric Fox, and Senior Research Economist, Reena Agrawal, discuss this topic, referencing mortgage rates and wealth accumulation as they come to their conclusion.
Here are some key takeaways from the episode:
- Prior to the pandemic, the total equity of all homeowners had reached 19 trillion dollars. Today, the number is 35 trillion dollars, showing a sharp increase in total equity amongst homeowners over the last 7 years.
- There are millions of homeowners with mortgage rates between 2-4%, with even 20% of all mortgage owners having a rate below 3%. Current homeowners will not want to switch to something double the rate at ~6.5%.
- Many homeowners are financially secure enough to wait for the right price, rather than delisting their home.
Is it stubbornness? Or smart thinking? Find out in episode 47 of the RiskWire Webcast today: Webcast & Interviews – RiskWire, powered by Veros
For additional information about the housing market or economic trends, visit RiskWire.com today! Also, don’t forget to listen to RiskWire: On the House on your preferred channel: Apple Podcasts, Spotify, and YouTube Podcasts.
