[j79]

> Nobody with a sub-4% is going to sell

Nobody with a sub-4% is VOLUNTARILY going to sell. Home prices have slowly dropped to adjust for interest rate increases. However, a "price reset" will probably occur in areas where folks need to sell due to financial hardship.

Credit Card usage has already seen an increase, savings contributions have dropped, and car loans payments have seen more defaults. Unfortunately, folks are struggling these days.

A sudden "panic sell" of just a few homes could cause overall homes values in a neighborhood to drop, thus "correcting" or "resetting" over-inflated prices. Unfortunately, this would be a doomsday-scenario for many folks who bought recently in the 6-7% with inflated prices. Until interest rates dropped, they're stuck with a terrible payment while being severely underwater for their homes.

Can you imagine if THEY need to sell? Suddenly the value of their home doesn't even cover their mortgage. Now you're talking bankruptcy for many folks...

[Ancalagon]

Idk which market you’re referring to but prices dropped but have risen in the areas I follow almost back to where they were peak 2022.