I know a couple who were incited by the this crazy market to take a very generous offer on their home. They thought they could simply buy another one, but in almost 2 months they haven't been able to secure another house (outbid, lost the house to another buyer, etc.) on almost a dozen other homes.
They are looking for a short term apartment right now and long term storage. Yeah, they got the cash for their home, but they don't seem very happy at all about the whole situation.
Sounds like they forgot that local prices tend to rise and fall relative to the neighborhood - to cash in they would have needed to relocate to a lower-priced area.
People never seem to understand “sunk” cost and “replacement” cost. The best reason to own a house is to preserve housing purchasing power. But so long as you need a house equivalent to the one you have, cashing out is not gainful.
Yup In rural areas, it is even more nutz.
I own the place outright.
If I move, I’ll have bought something before I sell here.
I can put the place into rental if needs be.
Here in Ak folks (a large number from the L48) are buying any kind of land with access (a road) at insane prices.