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In 2020, like millions of other homeowners, he refinanced his mortgage. He's now paying about 2.5% interest and his home also has appreciated in value by more than $100,000. I recently asked him if he would consider selling. "No," he said. The only reason to sell would be landing a new job with a salary bump that he couldn't pass up. Otherwise, why sell and then buy in such a competitive housing market? You get so much less house for the money these days, he said. And what would even be available to buy?
My friend's sentiments reflect what a lot of homeowners think, and present a hurdle for the future. Average housing tenure has already doubled to more than a decade. Now, locked into historically low rates, what motivation do current homeowners have to become sellers and enter the pool again as a buyer? Did the refi boom set up the housing market for a tough decade ahead?
LOs – I'd love to hear more about your buyers! If they're not first-time homebuyers, what spurred them to enter this market? Are they newly freed up remote workers or mostly boomers near retirement age? Please share with me anonymously at james@hwmedia.com.
James Kleimann
Managing Editor, HousingWire
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