Thanks to just some guy’ for sending in this article comparing prices, rates, and inflation:
https://awealthofcommonsense.com/2021/03/what-if-housing-prices-arent-as-high-as-they-appear/
It’s a feel-good idea that inflation and lower rates can ease the pain of higher prices. But recent pricing has been really painful for buyers! Let’s apply the data to our local action (using 80% of MSP):
NSDCC Detached-Home Sales, February
| Year | ||||
| 2006 | ||||
| 2015 | ||||
| 2018 | ||||
| 2021 |
It’s a nice idea, and higher rates did cool things down a bit in 2018. But today’s market is so explosive that we are blowing through all the usual stop signs – look at the number of sales!
My guess is that there will be additional sellers pulled forward from future years, just like with buyers – it’s too lucrative and tempting to find a way to sell now. Might it mirror the covid-recovery trend line?
purchased in 2013………..sold in 2021 and moved up to a larger house
Took all of the net proceeds from the sale and rolled it into the down payment on the new house.
my monthly payment is the same now as it was in 2013 despite a larger mortgage now compared to 2013.
Your delta was incredibly small – buying for only 30% more than house sold.
My rule of thumb for most people is that they need to spend at least 50% more to buy a house that makes it worth it to move.
But I suspect that there is a segment of those who bought in 2009-2013 who have had such a large increase in equity that it makes paying $100k over list not only more feasible, but less painful.
You’ll be one of the few this year who sold for +100k over, but didn’t have to pay it on the other end!