If you are a relator, it is time to find another job. Home sales are down by about 20% because the entire housing market has shrunk. People with 3% mortgages aren’t moving. This includes baby boomers in large houses who would have downsized in previous decades.
Why pay more money to move into a smaller house? Not only will your monthly payment go up due to 7% interest rates, but your insurance and property taxes will as well. In many states property tax increases are capped to a low percentage.
If you move you must pay a lot more on a $1 million house than the $500,000 (now worth a million) that you bought ten years ago. In addition, you’ll have to pay capital gains tax on anything you make over $500,000 as a married couple ($250,000 if single).
And if in spite of that, you did want to move there is limited inventory to choose from.
All the best,
Christian DeHaemer
