You have probably heard someone say "nobody is listing because they do not want to give up their low rate." That is true. Let me explain why and what it means for you.
The Lock-In Effect
Between 2020 and 2022 millions of homeowners refinanced or bought at rates between 2.5% and 4%. Those rates were historically low. We may never see them again.
Here is what that means in real numbers. If you bought a $350,000 house in 2021 at 3.2%, your payment was about $1,500 a month for principal and interest. If you buy that same house today at 6.7%, the payment is about $2,250. That is $750 more per month for the same house.
People do not voluntarily take a $750 payment increase. So they stay put. That is the lock-in effect.
What It Means for Anderson County Inventory
Anderson County has the same problem as everywhere else. The people who would normally sell and move up or downsize are staying in their houses because leaving costs too much. That keeps inventory tight even when demand softens.
New listings are up 28% this year. That sounds like a lot. It is a lot compared to last year. But we are still well below the normal inventory levels we had in 2018 and 2019. The market is not flooded. It is just less empty than it was.
What It Means for Buyers and Sellers
If you are buying, you need to know that inventory is still tight by historical standards. You cannot wait forever on the perfect house. When a good one comes up in the right price range you need to move.
If you are selling, you need to know that the buyers out there are serious. They are not browsing. They have accepted the 6.7% rate and they are looking anyway. Price your house right and it will sell.
Nobody knows when rates will come down. If they do, a lot of pent-up inventory will hit the market at once. That might be a better time to buy. It might also mean more competition. Right now the math is what it is. Work with it.