Crunching Numbers: The ‘Golden Handcuffs’ Holding Back Home Inventory

Explaining the conundrum in today’s market with high rates and demand.

One question I get asked all the time is: “Where are all the homes?” In today’s market, where rates are climbing and continue to do so, homes are a lot more expensive. The truth is that there are “golden handcuffs” in today’s market. 

Many homeowners have 3% and 4% interest rates, so it takes a lot for them to give that up. Many people find that it’s more affordable to add a bedroom to a house or do a construction project rather than move across town to the home they like a little bit better. There has to be a big motivator. 

People who still decide to move are going out of state, selling a secondary property, downsizing, or there’s a major reason for them to move. They need something for their lives that they can’t get in their current home. If that’s you, just know that moving today is expensive. I’ve seen many people’s payments double, so if you decide to make this move, I recommend refinancing. 

With demand higher than inventory and the market being so hot, the market can be difficult to navigate. If you have any questions or want help breaking the golden handcuffs, don’t hesitate to reach out. You can call or email me anytime, and I would love to help you.