WHY NO ONE IS SELLING THEIR HOUSES- It is the mtg rates.
I want to revisit a blog post from a month ago which outlines why someone might not sell their house due to rates.
See link below:
Today rates stand at about 5.4% for a 30 year note.
91% of homeowners have an interest rate under 5%. This is reducing mobility. So in order to buy something you need someone to sell.
Who and When Are People Selling?
When someone dies
When someone has to move
When someone loses their job and is about to be foreclosed
When someone has too many repairs and they simply can't pay the bills
When someone wants to take their gains on their house and become a renter
There are not many people selling Multis, why is this?
Reasons Multifamily Investors Sell
They can 1031 into a better property
They can 1031 into a BIGGER property so less locations to manage
They are simply sick of being a landlord
Their rents are below market and someone is willing to pay them a lot more than the rent ratio they get now
They are afraid they will not be able to collect rents for some reason
Rates are a big deal and the FED created a mess and now that we have inflation they are trying to simply stop the housing market.
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