Let’s stay on this topic because a break-through may be close.
Diana Olick did mention in the video that we should compare to the market in 2000, when we had the same credit standards as today. She claimed that today’s payments are 50% to 60% higher today, than in 2000. In San Diego they are about 33% higher, which is just under the rate of inflation.
But at the end of the video, Diana says that she refinanced her own home onto a 15-year mortgage and hopes to pay it off in 10 years!
People across the country are doing what she did – hunkering down and staying put. It is the cause for low inventory (getting worse around here), and the sellers’ hyper-optimism, which leads to over-priced listings.
Between the fewer listings overall, and those that do hit the market being at the top of their range or higher price-wise, there is no wonder that sales are slower – especially when they insist on comparing to last year’s super-frenzy.
If Diana would just look at her own state of affairs and apply the same reasoning to other Americans, maybe it will open other possibilities for her.
Here are links to the media’s latest guesses:
Residential sales in San Diego County between Jan. 1st and Apr 15th are down 12% compared to 2013, and that’s with average pricing up 18%, and mortgage rates up 24%. We should be celebrating how well the market has endured those changes!