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bshepp t1_j2t5wd5 wrote

Imagine doing the thing that's causing the problem to solve the problem. This seems like a precursor to a panicked sell off.

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Velkyn01 t1_j2ueg4b wrote

Who's going to sell off their fixed 2.6% or 3.1% mortgage? Lol

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bshepp t1_j2ujniq wrote

Real estate investors. Yeah the whole market is being held up by shitty people and companies refusing to let go of their 17k -> 300k flips. They are leveraged against those prices. This has little or nothing to do with individuals selling homes.

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Background-Depth3985 t1_j2y4pgo wrote

The heirs of people who die. People who get divorced. Retirees that want to downsize. People moving from a HCOL area to a LCOL area because they now work remotely. People who have to move back home to take care of a sick parent. People that are laid off and can’t find comparable pay in the same metro area. Investors who were in it for speculation and realize that the music has stopped. Investors who bought the home as a short term rental and realize that it isn’t cash flowing. Investors who bought the home as a long term rental and realize it isn’t cash flowing. Investors who bought the home as a long term rental only to realize that a lot of tenants are shitty and don’t want to deal with the hassle. iBuyers (opendoor, etc.) deciding to get out of a metro area completely. Flippers who bought before mortgage rates went up.

Should I go on?

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Velkyn01 t1_j2y5y56 wrote

Few of those are the people participating in a "panicked sell off". And with rents rising across the country, I'm sure short-and long-term investors are doing just fine.

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Background-Depth3985 t1_j2y71af wrote

>Few of those are the people participating in a "panicked sell off".

Eh, if they were on the fence about selling already, declining prices might cause them to pull the trigger before prices decline further. That goes for just about every type of seller I listed. Not exactly panicked, but definitely influenced by price reductions.

>And with rents rising across the country,

That trend reversed in October: https://thehill.com/policy/finance/3779075-rent-prices-see-biggest-one-month-drop-in-at-least-7-years-zillow/amp/

>I'm sure short-and long-term investors are doing just fine.

I’m sure the vast majority are perfectly fine. In such a gridlocked real estate market, it doesn’t take many new/unexpected sellers to influence price discovery though.

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Photoguppy t1_j36vior wrote

2.75 percenter here. I'm going to have to move for work in the next year and I'm making plans to rent my home instead of sell it because the interest rate is just too damn good to let it go.

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lankypiano t1_j2u95eq wrote

At least with real estate/property, a sell off like that can, ideally lead to a lot of people making their dreams happen, and the corpos that bought out land getting fucked.

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