Realtor buddy tells me sellers have not brought down their price expectations from the COVID panic buying as people fled the city for the ‘burbs and boondocks.
Home sellers are always the last ones to figure out that prices need to drop.
They wait and wait and wait and wait...and then panic.
If you’re carrying a mortgage at 3%, you’re going to price your homes based on the higher down payment you would need to make the same monthly payment on an 8% mortgage.
Also sellers are trying to get same selling prices they could have received when the interest rates were lower.