this post was submitted on 26 Nov 2024
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Just recently started looking since we want to sell our current one and buy another. We purchased 10 years ago, and after looking up and down the state, the average price increase for all houses is about 200k... so whether it's a 300k house or a 600k house 5 years ago it is now 200k more for both right now. I honestly doubt there was a 17% drop in this state.
This isn't a 17% drop in values, it's a 17% drop in sales, meaning 17% fewer homes are being sold as of last month. I think there's a good chance that's pretty consistent on both sides of the transaction, since sellers are less willing to trade their low rates for a higher rate, and buyers are less willing to have the down payment for higher rates.
We've been interested in moving to upgrade our house (want a guest bed and a bigger master bed) and to reset the capital gains exclusion (we're up around $350-400k, cap gains exclusion is $500k), but it's not worth giving up our lower rate. We'll be interested if rates drop below 5%, but with current rates around 6.5-7% (depending on term), we're not interested.
I imagine a lot of homeowners are like us. They don't need to move, so they'll put it off until mortgage rates are more attractive, or until they need to move.
At least you get to roll your equity over into the new market, rather than having to enter from scratch.
Not really, 90% of the reason we're moving is because we can no longer handle the debt accumulated and plan to use whatever gains we make to bring ourselves out of it and hope to have enough to at least put down a down payment on something else.