Facebook
X
Pinterest
Copy Link
The #1 Reason Buyers Walk Away (And How To Get Ahead of It)
You may have seen headlines on social saying the number of buyers backing out of their contracts is on the rise – and has recently reached a high not seen since 2017. That can sound intimidating. But it varies a lot by market.
And here’s the key thing to understand if you want to sell. A lot of the time, there’s one common cause. And it’s something you can actually control.
Here’s what you can do to get ahead of the biggest dealbreaker before it ever becomes a problem.
The Top Dealbreaker: Issues That Pop Up During the Inspection
A Redfin survey shows over 70% of recently cancelled contracts happened because of issues during the home inspection (see graph below):
And that makes sense. Because today’s buyers have something they didn’t have a couple of years ago: options.
Why Fixing Things Before You List Matters More Today
A few years back, when buyers felt rushed or boxed in due to the limited number of homes for sale, they were more willing to overlook issues.
But in today’s market, skipping essential repairs is one of the fastest ways to lose a deal.
Now that there are more homes to choose from, buyers can be more selective. If a house feels risky, outdated, or like it’s hiding expensive surprises, they’re a lot more likely to walk away. So, what do you have to fix? Just ask an agent.
How Your Agent Can Help Give You the Edge
A local agent will be able to walk through your house and offer advice on what to tackle based on your specific home, your market, and what buyers are prioritizing in your area. They’ll also have first-hand knowledge about some of the biggest turnoffs for buyers today. And you can use that expertise to prevent future headaches.
For example, according to Zillow, these are some of the issues buyers will care the most about:
- Roof leaks or damage: sagging, leaking, etc.
- Plumbing problems: standing water, leaks, water damage, etc.
- Electrical concerns: outdated or exposed wiring, missing GFCI outlets, etc.
- HVAC issues: non-functioning units
- Pest or insect damage: termite colonies, etc.
- Hazardous materials: lead, mold, asbestos, etc.
- Safety/code violations: missing smoke detectors, windows stuck closed, etc.
- Structural problems: cracks in the foundation, sagging floors, etc.
Odds are not all of this even applies to your house. Maybe only 1-2 things do. Or maybe none of them do. It just depends. But an agent will have the tools and resources to help you figure it out and stay one step ahead.
The Benefits of a Pre-Listing Inspection
To buyers, these aren’t cosmetic issues. They’re trust issues. And that’s what you need to watch out for today. Once buyers start wondering “what else might be wrong,” it’s hard to recover momentum.
That’s why some agents are even recommending a pre-listing inspection as a sneak peek into what buyers will see on their own inspection. With that insight, you can:
- Fix concerns before you list, or disclose issues upfront
- Avoid having to respond or negotiate under pressure
- Stop scrambling to find contractors with availability before your closing date
But remember, you don’t have to fix everything. You just have to be strategic about what you do tackle, so you and your buyer aren’t caught off guard.
And that’s why you need an agent who can:
- Decide if a pre-listing inspection is worth it where you live
- Recommend a trusted inspector (if you decide to get one)
- Look at the results with you to identify true dealbreakers in your market
- Help you decide what to fix or what to credit
- Make sure you avoid over-spending or under-preparing
Bottom Line
One of the biggest dealbreakers for buyers today is inspection issues – and that’s something you can control. You just need to be proactive about high-impact repairs before you list.
If you want help figuring out where to focus, give me a call and I would love to discuss your specific situation.
If Your House Isn’t Getting Offers, Read This.
Online searches for “can’t sell house” just hit an all-time high according to Google Trends. So, if your house has been sitting on the market without any bites, you’re not the only one. But it’s also not the end of the road.
Homes are selling every day, so you can turn this around. You just need to take another look at your approach.
If you’re feeling this pain, know this: an online search engine isn’t where you should go for your answers. It’s much better to talk to your agent. Because a search engine doesn’t know your market or your house. But your agent does.
While a quick search or an AI platform may give you some tips on what to try, only an expert agent can actually diagnosis what’s going on – and how to fix it.
For example, your agent knows most homes that struggle to sell today are usually being held back by one (or more) of these three things.
1. Presentation: Buyers Will Compare Everything
When inventory was tight a few years ago, buyers overlooked imperfections because they had to, or they’d lose out to another bidder. Now? That’s no longer the case.
Today’s buyers scroll through dozens of listings in just minutes. They compare condition, updates, lighting, finishes, layout, and more – all side by side. If your home feels dated, cluttered, or in need of repairs, buyers will notice and it’ll knock your house right off their list of contenders.
This doesn’t mean you need a full renovation. But it does mean first impressions matter again. To compete today, you need curb appeal. Clean spaces. Neutral colors. Professional photos. If there are scuffs on the walls, obvious repairs, or too many outdated features, it could be what’s holding you back.
2. Pricing: If the Price Isn’t Compelling, It’s Not Selling
This is maybe the hardest one to hear, but what your neighbor sold their house for a few years ago isn’t necessarily the same price you’ll get today. As Selma Hepp, Chief Economist at Cotality, says:
“For sellers, the days of pricing aggressively and expecting instant offers are largely over. Homes that are well-priced and well-presented will still sell, but pricing discipline matters more than it did during boom years.”
Buyers are budget-conscious right now. If your home is priced based on outdated expectations instead of current demand, buyers may still look at your house online… but they likely won’t write an offer. Or, they’ll make an offer that you think is too low.
Pricing too high for this market is one of the top things sellers miss the mark on today. And those who aren’t willing to meet the market where it is or entertain offers may feel stuck.
3. Access: If Buyers Can’t See It, They Can’t Buy It
It sounds obvious but limited showing availability can kill your momentum. If your house isn’t easy to see because you’re restricting showings to evenings only, no weekends, or requiring a 24-hour notice, you’re cutting your buyer pool down by more than you may realize.
And the more friction you create, the fewer buyers walk through the door.
In a market where buyers have more options, the last thing you want to do is give them a reason to skip your house. Availability matters because if no one sees it, no one buys it.
Don’t Let Search Results Decide Your Next Step
When your house isn’t selling, it’s tempting to spiral and wonder if it’s the market or if something’s wrong with your house. But instead of searching for answers online, here’s what to do.
Sit down with your agent and ask three honest questions:
- What are buyers looking for in today’s market?
- What feedback are we getting from showings?
- Why do you think my house hasn’t sold yet?
That conversation will bring a lot more clarity than any search engine results.
Bottom Line
If your listing feels stuck, it’s not a sign you shouldn’t sell. It’s the market giving you feedback. And feedback is powerful when you use it.
Start with a real conversation with a real agent about what’s working and what’s not. I will be able to tell you which small adjustments could totally change the momentum. Because in this market, the sellers who adapt are the ones who move.
Top 3 Reasons To Buy a Home Before Spring
If you’re planning to buy a home this year, you may be focused on the spring market. And hoping that when spring does hit, you’ll see:
- Mortgage rates drop a little more.
- More homes hit the market.
But here’s what most buyers don’t realize. Buying just a few weeks earlier could mean paying less, dealing with less stress, and feeling less rushed.
Here are three reasons why accelerating your timeline over the next few weeks could actually be a better play.
1. Holding Out for Lower Rates May Not Pay Off
A lot of buyers are hoping mortgage rates will fall even further. But that’s not the best strategy. Here’s why. Experts are pretty aligned on this: rates are expected to stay roughly where they are.
Forecasts throughout the industry all point to the same thing: rates are projected to be in the low-6% range this year (see graph below):
That’s not a bad thing, especially if you consider how much rates have already come down. Over the past 12 months, they’ve dropped roughly a full percentage point. And for many buyers, that means affordability has already improved more than they may realize.
So why wait a few more weeks just for more buyers to jump in and act as your competition? You already have a window right now. As Chen Zhao, Head of Economics Research at Redfin, explains:
“House hunters should know that this may be near the lowest mortgage rates fall for the foreseeable future.”
2. Spring Means More Competition + More Stress
Speaking of competition, the spring market is popular for a reason, but with popularity comes pressure. With more buyers active at that time of year, you’ll have to move faster once you find a home you like. And no one likes feeling rushed.
But buy now and you have more time to browse. Fewer people are looking, so homes sit longer.
You can see this play out in the data from Realtor.com (see graph below). In winter months, it takes an average of about 70 days for a home to sell. In spring? That drops to about 50 days. That’s a 20-day swing – and that pace is going to be more stressful.
Homes sell faster in the spring, and slower in the winter. And that can be a worthwhile perk for buyers who want to get ahead before their decisions start to feel rushed.
3. Prices Tend To Rise When Competition Heats Up
And here’s something most buyers forget to factor in. Prices usually respond to demand. So, when demand is higher, prices are too. Bankrate explains:
“Spring and early summer are the busiest and most competitive time of year for the real estate market . . . home prices tend to be steeper to reflect the increased demand.”
In fact, data from the National Association of Realtors (NAR) shows that in 2025, buyers who purchased in the beginning of the year saved roughly $30,000–$35,000 compared to those who bought when prices peaked in the spring or early summer.
And let’s be honest, for a lot of buyers today, every little bit of savings helps. That’s why buying just a few weeks earlier, before prices ramp up, will be better for you and your wallet.
Bottom Line
Buying a few weeks before spring isn’t about rushing. It’s about choosing to be ahead of the curve and knowing you want more leverage, less stress, and meaningful savings.
If you’re ready and able to buy now and want to get the ball rolling, give me a call!
Article provided by Keeping Current Matters
The Price You Set Can Make (or Break) Your Sale
There’s one decision you’re going to make when you sell that determines whether your house sells quickly, or it sits. Whether buyers make an offer, or scroll past it. Whether you walk away with the maximum return, or you end up cutting the price later.
And that’s your asking price.
The #1 Mistake Sellers Make Today: Trusting the Wrong Number
If you’re thinking of moving and trying to figure out what your house may sell for, it’s tempting to start with an online home value tool. They’re fast, free, and easy. And you don’t have to talk to anyone. But here’s the problem: they don’t know your house.
And that can be a bigger drawback than you realize.
Where Online Estimates Fall Short
Online tools often lag behind the market. They look in the rearview mirror, relying on closed sales and delayed information. And in that sense, they’re using incomplete data.
That’s not a miss in how these systems are built. Some information just isn’t available online. Bankrate explains:
“While these tools can be a useful starting point, keep in mind that they typically do not provide the most accurate pricing. Algorithms can only rely on the information available; they can’t account for things like a home’s condition or renovations made since the last public information was updated.”
They can’t see:
- The unique features that make your house special
- All the work you’ve put in to keep it in good condition
- Or, how in-demand your specific neighborhood is right now
So, while they may do a good job in some cases, they can’t be as accurate as a local agent who has boots on the ground day in and day out.
In a market where buyers have more options, a seemingly small margin of error can cost you thousands if you price too low, or weeks of lost momentum and time if you price too high.
If you want to sell for the most money and in the least amount of time, you don’t want the fast answer on how to price your house. You want the right one.
That’s why the savviest homeowners today don’t rely on algorithms when it actually matters. They rely on people, specifically trusted local agents.
What an Expert Agent Brings to the Table
According to 1000WATT, sellers overwhelmingly believe real estate agents have the best sense of a home’s true value, far more than any automated tools.
That confidence isn’t accidental. As Bankrate puts it:
“A professional appraiser or real estate agent can visit the home in person, assess the neighborhood as a whole as well as the individual property, perform more thorough market research, and consider subjective details.”
And those details matter. A skilled local agent doesn’t just pull reports. They know what’s happening right now:
- What buyers are paying this month, not last month, or even last year
- How your home compares to the current competition in your neighborhood
- Which features add value based on what buyers are willing to pay for today
- How to price your house to create urgency in this market
And once an agent steps foot in your house, they may even find your online estimate undershot your value. So, if you stuck with the estimate you got online, you’d actually be leaving money on the table. And no one wants that.
Bottom Line
While online tools can give you a rough starting point, only a local expert can give you a price that actually works.
If you want to know the right number for your house, not just the easiest one to find, give me a call. I would love to help you, no obligation, just clarity.
Top Real Estate Agent in Granite Bay & Roseville, CA | Suzanne Volkman, Coldwell Banker Realty
When navigating today’s competitive real estate market in Granite Bay, Roseville, and communities throughout Placer, Sacramento, and El Dorado Counties, professional guidance and local expertise make a measurable difference.
Suzanne Volkman is a Broker Associate with Coldwell Banker Realty and a Top 100 Agent in the Sac/Tahoe Region, providing residential real estate representation across all price ranges and property types. Her practice is built on disciplined pricing strategy, direct client advocacy, and hands-on transaction oversight from consultation through closing.
Suzanne holds advanced professional credentials, including Certified Residential Specialist (CRS), Pricing Strategy Advisor (PSA), Accredited Buyer’s Representative (ABR), Global Luxury Specialist, Performance Management Network (PMN), and the Realtor® Emeritus distinction from the National Association of REALTORS®. She is a past President of the Placer County Association of REALTORS® and the Placer County Women’s Council of REALTORS®, reflecting long-standing leadership and service within the industry.
Clients work directly with Suzanne—not a handoff team—ensuring continuity, accountability, and clarity throughout every stage of the transaction.
For a confidential consultation or current market analysis, contact:
Suzanne Volkman, Broker Associate – Coldwell Banker Realty
🌐 https://suzannevolkman.com
📞 (916) 847-1445
✉️ suzanne.volkman@cbnorcal.com
DRE #00702179
Is Buyer Demand Picking Back Up? What Sellers Should Know.
The housing market hasn’t felt this energized in a long time – and the numbers backing that up are hard to ignore. Mortgage rates have eased almost a full percentage point this year, and that shift is starting to wake up buyers.
Home loan applications have risen. Activity has picked up. And sellers who step in early could benefit from the momentum long before the competition catches on.
Let’s take a look at what’s happening behind the scenes and how you can take advantage of it.
When Rates Come Down, Buyer Activity Goes Up
In today’s market, buyer demand is closely tied to what happens with mortgage rates. As rates come down, applications for home loans go up. Rick Sharga, Founder and CEO of the CJ Patrick Company, explains it like this:
“We’re in an incredibly rate-sensitive environment today, and every time we’ve seen mortgage rates drop into the low-to-mid 6% range, we’ve seen an influx of buyers hit the market.”
And that’s exactly what the data shows. More people who were sidelined are applying for mortgages again now that borrowing costs have come down. Of course, that’s going to ebb and flow just like rates ebb and flow. But the bigger picture is, there’s been improvement as a whole since rates started coming down.
In fact, the Mortgage Bankers Association (MBA) shows the Mortgage Purchase Index is hovering at the highest level so far this year:
And that’s not the only sign of optimism. MBA also shows mortgage applications recently hit their highest point in almost 3 years too. A clear sign demand is moving in the right direction heading into 2026:
And just in case you were wondering, it’s not just pent-up demand coming out of the government shutdown that slowed some of the processing of government loans for a month or so. If you look back at the last graph, you’ll see the steady build-up of momentum throughout the entire year.
The big takeaway for you is this. Now that rates have come down, buyers are starting to ease back into the game. And that’s turning into real contracts on homes just like yours.
Home Sales Are Rebounding
Just to really drive home that this is trending in a good direction, the most recent report from the National Association of Realtors (NAR) shows pending home sales (homes that are under contract) are picking up too. The Pending Home Sales Index is also at the highest it’s been all year (see graph below):
And that means the market is ending the year on a high note and headed into 2026 with renewed energy. While that may not seem like a big shift, it’s a rebound worth talking about.
Pending home sales are a leading indicator of where actual sales are going. If more homes are going under contract, it’s a good sign more homes will actually close over the next two months, ultimately boosting sales. This could be part of why experts project home sales will inch higher in 2026 than they were in 2025 or in 2024.
Of course, this may ebb and flow a bit as we see some year-end volatility with mortgage rates. But, it shouldn’t be enough to change this overall trend. Expert forecasts say rates should stay pretty much where they are throughout 2026. That means the stage is set for this momentum to continue going into the new year.
What This Means for You
Here’s the opportunity. Selling now means:
- More buyer demand. As affordability improves, you could see more buyer traffic and home showings (if your house is priced and staged right). And the best part? The buyers who are re-engaging feel like they’ve already waited too long for this moment. So, they’ll be eager to move.
- Being ahead of the curve. Listing sooner rather than later puts you ahead of the game, before other sellers realize something’s shifted.
Whether you’ve been putting off selling because you thought buyers weren’t buying, or you took your house off the market because you weren’t getting any bites, this is your sign to act.
Bottom Line
Want to know what’s happening with buyer activity in your area, and what it could mean if you want to sell your house in the new year?
Let’s talk about getting your house listed in early 2026, so you can take advantage of this momentum building in the market.
You May Not Want To Skip Over That House That’s Been Sitting on the Market
When you see a house that’s been sitting on the market for a while, the reaction is almost automatic. You start thinking:
- What’s wrong with it?
- Why hasn’t anyone bought it yet?
- Am I missing something?
That mindset made sense a few years ago. But in today’s market, you may actually miss out.
More Time on Market Isn’t Automatically a Concern Anymore
A few years ago, homes sold in just a matter of days. Sometimes, hours. Anything that lingered longer than that raised concerns. But that’s no longer the baseline.
Inventory has grown. Buyers have more choices. And homes are taking longer to sell across the board. Those are some of the reasons why the typical time it takes a home to sell has climbed this year:
And it’s not that 73 days is slow. That’s actually pretty normal for this time of year. It just feels slow because you heard so much about houses being snapped up in the buying frenzy a few years ago.
That shift alone explains a lot of what you’re seeing. It’s not necessarily that there’s anything wrong with the house itself. Although, let’s be honest, sometimes that is the case.
Most of the time today, a house that’s taking longer to sell simply means:
- There are a lot of homes for sale in that area
- The seller priced a little too high at first
- The home didn’t photograph as well online
- Buyers passed it over for flashier listings nearby
- The timing just wasn’t right when it first hit the market
None of those are necessarily deal-breakers.
What Buyers Often Get Wrong About These Listings
Because even though you may assume a house that hasn’t sold must have hidden issues, the reality is, that’s not always the case. And, if the house does have issues, it’ll show up quickly in your inspection.
That’s information you can use to negotiate. Not a reason to walk away automatically. And in many cases, that’s where buyers find the best deals.
The key is knowing which homes that have been sitting for a while are worth a second look – and which ones aren’t. That’s why working with a local agent makes a real difference. They’ll be able to look at disclosures and more to help you uncover hidden gems other buyers may overlook.
Bottom Line
A home sitting on the market isn’t always a warning sign. Sometimes it’s an overlooked opportunity.
If you want help identifying which homes are worth a second look (and which ones to skip), give me a call and I can help you decide.
*Keeping Current Matters*
Why Pre-Approval Should Be Your First Step – Not an Afterthought
Finding the right home feels exciting – but being pre-approved for your loan is what makes it possible. Whether you’re planning to buy soon or still just thinking about it, getting pre-approved is one of the best moves you can make. Here’s why.
1. What Is Pre-Approval, Really?
Pre-approval is much more than a guess. It means a lender has reviewed your finances (things like your income, assets, credit score, debts, and savings) and told you how much they’re willing to let you borrow for your loan.
It’s basically a reality check for your home search, so you can make sure it aligns with your budget and shop confidently when you’re ready to go.
2. Why It’s a Power Move (Especially Right Now)
The housing market’s been shifting lately with mortgage rates moving, prices moderating, and inventory rising. So, knowing what you’re working with in the current market is a big reason why pre-approval matters. Here’s what it gives you:
- Clarity: You’ll know what you can afford before you fall in love with a house that’s potentially out of reach.
- Confidence: Sellers will take your offer seriously when they see you’re pre-approved because you’re not a risky buyer.
- Control: If rates come down and you want to jump on the moment, you’re already a step ahead with your plan.
As Experian explains:
“. . . you’ll want to make sure you receive your preapproval letter before you start looking at homes so you can submit a strong offer as soon as you find what you want. The process can take anywhere from a day to a few weeks, so if you procrastinate, you may lose out to a competing offer.”
And once you find a home you want to put an offer on, pre-approval has another big perk. It not only makes your offer stronger, it shows sellers you’ve already undergone a credit and financial check. As Greg McBride, Chief Financial Analyst at Bankrate, says:
“Preapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.”
Translation: Pre-approval helps you make stronger, more informed decisions – and it helps you avoid missing out on a home or getting stuck on the sidelines when the right one hits the market. Because the reality is, competition might be lower these days, but desirable homes (especially the ones that are priced well) still go quickly.
3. Don’t Wait Until You’re “Ready”
Think of it this way: pre-approval doesn’t mean you’re buying a house tomorrow. It just means you’ll be ready when the time comes. And most pre-approvals are good for 60–90 days and can be refreshed easily if your plans change.
So, here’s a good place to start. Ask yourself this question: “If the perfect home came along today, would you be ready to make an offer?”
If your answer is “not quite,” then pre-approval is your next step.
Bottom Line
Pre-approval doesn’t box you in. It opens doors.
In today’s market, buyers who win aren’t the ones who wait. They’re the ones who plan. So, if you’re even thinking about buying in the next few months, get ahead of the game by connecting with your trusted lender. If you would like a referral to an agent that I have worked with, give me a call.
We can help you understand what how the process works and walk you through every step along the way, so when the right home pops up, you’re ready.
Thinking about Selling Your House As-Is? Read This First.
If you’re thinking about selling your house this year, you may be torn between two options:
- Do you sell it as-is and make it easier on yourself? No repairs. No effort.
- Or do you fix it up a bit first – so it shows well and sells for as much as possible?
In 2026, that decision matters more than it used to. Here’s what you need to know.
More Competition Means Your Home’s Condition Is More Important Again
Over the past year, the number of homes for sale has been climbing. And this year, a Realtor.com forecast says it could go up another 8.9%. That matters. As buyers gain more options, they also re-gain the ability to be selective. So, the details are starting to count again.
That’s one reason most sellers choose to make some updates before listing.
According to a recent study from the National Association of Realtors (NAR), two-thirds of sellers (65%) completed minor repairs or improvements before selling (the blue and the green in the chart below). And only one-third (35%) sold as-is:
What Selling As-Is Really Means
Selling as-is means you’re signaling upfront that you won’t handle repairs before listing or negotiate fixes after inspection. That can definitely simplify things on your end, but it also narrows your buyer pool.
Homes that are move-in ready typically attract more buyers and stronger offers. On the flip side, when a home needs work, fewer buyers are willing to take it on. That can mean fewer showings, fewer offers, more time on the market, and often a lower final price.
It doesn’t mean your house won’t sell – it just means it may not sell for as much as it could have.
How an Agent Can Help
So, what should you do? The answer isn’t one-size-fits-all. It’s going to depend a lot on your house and your local market.
And that’s why working with an agent is a must. The right agent will help you weigh your options and anticipate what your house may sell for either way – and that can be a key factor in your final decision.
- If you choose to sell as-is: They’ll call attention to the best features, like the location, size, and more, so it’s easy for buyers to see the potential, not just the projects.
- If you decide to make repairs: Your agent can pinpoint what’s really worth the time and effort based on your budget and what buyers care about the most.
The good news is, there’s still time to get repairs done. Typically speaking, the spring is the peak homebuying season, so there are still several months left before buyer demand will be at its seasonal high. That means you have time to make some repairs, without rushing or stressing, and still hit the listing sweet spot.
The choice is yours. No matter what you end up picking, your agent will market your house to draw in as many buyers as possible. And in today’s market, that expertise is going to be worth it.
Bottom Line
While selling as-is can still make sense in certain situations, in some markets today, it may cost you. So, no, you don’t have to make repairs before you list. But you may want to.
To make sure you’re considering all your options and making the best choice possible, give me a call to have a quick conversation about your house.
Locked In Place: Why Millions of Homeowners Can’t Afford to Move
For years, America’s housing challenges have been framed as a simple supply-and-demand problem—low inventory, rising interest rates, and affordability constraints. But beneath those familiar headlines lies a deeper, structural issue we unintentionally created.
Today, millions of homeowners are wealthier on paper than ever before. They hold record levels of equity and historically low mortgage rates. Yet many of them cannot afford to move.
Not because they lack buying power.
But because moving no longer makes financial sense.
The Mortgage Lock-In Effect
Recent national data shows just how severe this gap has become. According to Realtor.com, the typical U.S. homeowner currently pays about $1,300 per month in principal and interest. Selling that home and purchasing a “typical” home today would require a monthly payment of approximately $2,236—a 73% increase in housing cost.
This growing gap is known as the mortgage lock-in effect. Homeowners who secured ultra-low rates during 2020–2021 are effectively trapped by them. Giving up a 3% mortgage to buy into today’s higher-rate, higher-price market often means paying significantly more—sometimes for a comparable or even smaller home.
The market isn’t frozen because people don’t want to move.
It’s frozen because moving comes with a financial penalty.
From Pandemic Stimulus to Market Stagnation
When mortgage rates fell below 3% during the pandemic, buyers surged into the market. Millions refinanced. Millions more purchased homes. Cheap financing softened the sting of rising prices, allowing values to climb rapidly—often 25% to 40% in many markets.
When inflation followed, rates snapped back sharply. Prices, however, did not.
The same mechanism that once encouraged mobility now suppresses it.
Federal housing research confirms this effect. A Federal Housing Finance Agency (FHFA) working paper estimates that rising mortgage rates have prevented millions of otherwise normal home sales by discouraging owners from listing their homes.
Why Homeowners Are Staying Put
It’s easy to assume homeowners stay because they “love their homes.” Many do—but that only tells part of the story. The real constraint is financial.
Homeowners face a stark choice:
-
Give up an exceptionally low interest rate
-
Buy into a market with both higher prices and higher borrowing costs
Even selling at a profit often results in higher monthly expenses and reduced flexibility. Equity becomes difficult to use when accessing it raises your cost of living.
This isn’t a lifestyle decision.
It’s a structural trap.
The Ripple Effect on the Housing Market
When homeowners can’t move, inventory shrinks. When inventory shrinks, affordability worsens—especially for first-time buyers.
This dynamic is already visible. Sellers are increasingly choosing to pull listings rather than cut prices or trade into higher-rate mortgages. According to Investopedia, delistings surged 45% year over year, highlighting the reluctance of owners to transact under current conditions.
Low inventory, in this context, is not the cause—it’s the symptom.
How We Unlock a Trapped Housing Market
This is not a short-term cycle. It’s a structural flaw that requires structural solutions:
-
Portable and assumable mortgages that allow buyers to take over existing low-rate loans
-
Incentives for downsizing and life transitions, particularly for long-time homeowners
-
Housing built for real demand, including townhomes, ADUs, and smaller, more attainable options
-
Modern mortgage products designed for flexibility and mobility—not just long-term lock-in
-
Greater transparency around equity use, so homeowners understand the true cost of moving
The Bottom Line
We built a housing system that rewards people for staying put and penalizes them for moving. The result is equity without freedom, ownership without mobility, and a market that struggles to function.
Mobility is not a luxury. It is a cornerstone of economic health and household well-being.
If we want a housing market that truly works, we must stop celebrating locked-in equity and start creating real pathways forward.
The American Dream only works if people can move with it.
Sources:
