Today’s real estate market is incredibly confusing—even if folks are “playing it straight”.
A few factors:
—There is a two tiered real estate market—the higher end where buyers can pay cash and the lower end where the buyers have to pay (relatively) high interest rate mortgages. The cash market remains strong, while the lower end is starting to feel the pain.
—Everything is local—totally dependent on the economy and whether new employers and retirees are moving in.
—Many potential sellers with mortgages are “locked in” to their current home with interest rates that are much lower than they would get if they moved. This means a lower supply on the market which raises prices on those houses that are for sale.
I agree with every word in your post. It was very succinct. I have seen many other analyses which stated basically the same thing but were far wordier. This is one of the issues that I struggle with frequently in my posts.