For the missing MLS inventory to return to the market, borrowers need debt forgiveness, and house prices need to move even higher.
I advise buyers to be sure they plan to live in the same place for at least two or three years for prices to rise high enough for them to sell and cover the sales costs. In a normally appreciating market like we have today, it still takes seven to ten years for prices to rise high enough to pay the costs and leave a first-time homebuyer with the 20% equity needed for the down payment on a move up. The breakeven barrier of two or three years keeps most properties off the market unless the buyer is under extreme duress. Once that threshold is met, the move-up down payment barrier is a practical choice made by those intending to[READ MORE]