The real estate market like the economy needs the wheels of commerce to turn.
A monkey wrench stuck in the wheels can create havock for the system. Arraya would call that a systemic crack.
I’ve been monitoring some 2005 purchases that are only now running out of wherewithal and going to short sales. The owners are finally at the end of their ropes and giving up because the expected real estate recovery did not materialize.
Before the bust, moving up was so common that chains of buyers and sellers would develop, with each deal dependent on the previous one in the chain. Move-up buyers are a key part of a more robust market, as all that trading up fuels price gains and helps homeowners to build equity.
“It is critical,” said Ed Leamer, director of the UCLA Anderson Forecast. “The way to think about is a chain of trades that normally occurs, and if that chain is broken at any point, or it doesn’t begin because you don’t have enough entry-level buyers, then the whole dynamic of the marketplace is affected and the level of resales is going to be very small.”
The move up market is “stuck” because current mortgage owners cannot afford to take the hit on their current house. Everything sells for the right price, but folks who are having trouble moving up are trying to sell for past fictitious price levels while buying at current prices. That only works if you have a time machine.
The move up market is “stuck” because current mortgage owners cannot afford to take the hit on their current house. Everything sells for the right price, but folks who are having trouble moving up are trying to sell for past fictitious price levels while buying at current prices. That only works if you have a time machine.
The move up market is “stuck” because current mortgage owners cannot afford to take the hit on their current house. Everything sells for the right price, but folks who are having trouble moving up are trying to sell for past fictitious price levels while buying at current prices. That only works if you have a time machine.
The move up market is “stuck” because current mortgage owners cannot afford to take the hit on their current house. Everything sells for the right price, but folks who are having trouble moving up are trying to sell for past fictitious price levels while buying at current prices. That only works if you have a time machine.
The move up market is “stuck” because current mortgage owners cannot afford to take the hit on their current house. Everything sells for the right price, but folks who are having trouble moving up are trying to sell for past fictitious price levels while buying at current prices. That only works if you have a time machine.
