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- Entire Housing Market, Buyers and Sellers, May Have Shrunk By 20% to 25% Because of the 3% Mortgages
Entire Housing Market, Buyers and Sellers, May Have Shrunk By 20% to 25% Because of the 3% Mortgages
by Wolf Richter Wolf Street
They’re not listing their homes because they’re not moving out because they’re not buying a home to move into because they don’t want to give up their 3% gift from God.
The exact numbers are hard to nail down, but we can guesstimate from the figures we have that the entire housing market, both buyers and sellers, has shrunk this year by about 20% to 25% compared to pre-pandemic years.
Meaning 20% to 25% less demand and sales and 20% to 25% less inventory and new listings, with prices down a tad year-over-year, showing that the market is roughly balanced at this smaller size because buyers and sellers have vanished in equal number.