I think flu’s point is people who bought in the past downturn or refinanced are in no “financial pressure” to sell. Most had to come up with down payment since there was no ninja loans at that time and their income was verified hard.
I bought in 4S and we paid in the 600s so if things are at the 800s or 900s now, then with what our mortgage is compared to rents (all rents I see now are higher than my mortgage even considering CFD fees)…You add in tax benefit of a mortgage and the cost to carry your home is much less for the buyer from the recent downturn.
Since the buyer I described above (bought during the downturn) above can rent out their home to a family for less than forcing a low sale price, they will just pull the home from the market if they don’t feel like they can’t get the price they want.
Some might sell still to just get rid of it, but as I mentioned before, I know of a few people in the area renting who has left with no desire to sell since the rent easily covers their mortgage and where else are you gonna put the money?
Of course, there will be people who DIDN’T buy closer to the bottom and there are divorces, job transfers where people have to leave…and that’s why there are transactions, but if you’re 200k+, maybe you aren’t hurting too bad…and, if it’s not a divorce, you can still rent it out.
