Quote:
Originally Posted by chemgear
You piqued my interest about this component and I had a more detailed look. On Mike F's website you can see the recent sales and what they were originally purchased for in the last seven years.
The most recent sample of ~100 SFH sales (in the last few days) show that almost exactly half of them lost money when they sold, net after standard realtor fees. That does not even include any kind of mortgage interest, property taxes, moving costs, repairs, etc. over time. Heck, that doesn't even include properties that had sunk costs for renovations over the last 7 years for a potential uptick in value.
Average loss was more than $50,000 - a bit painful for just a few years.
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Very interesting. Another take on this is how many people are in situations where they cannot afford to sell and walk away, but can still afford to make payments? That takes them right out of the market until they pay down principal, make more money, or prices rise sufficiently (Which will take a long time because the principal you pay down on high ratio loans is very small). This could explain the low inventory and the lower sales figures.