Buyers vs sellers market in real estate. With the buyer also being a seller(vice versa), would that not negate the impact?
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There are buyers and sellers who aren’t doing both sides of the transactions…
Much of the demand in the current market is from first time buyers — people who were renting apartments and decided they needed more space, finally had down payment money due to stimulus checks, relocated from high cost of living cities to ones they could afford to buy in, etc. so you had like 3-4 year of typical demand for starter homes as people moved up timelines and changed lifestyle.
At the same time, there were shortages of step-up homes for families who needed bigger homes for work from home, remote learning, etc. The shortage was because boomers were at the highest COVID risk, and thus didn’t want people touring their homes, they didn’t feel safe traveling to Florida or Arizona to look for their retirement home, they may have had adult kids move back home to ride out the pandemic. So the supply was tighter than typical for these homes.
And if there aren’t the step-up homes available to buy by sellers of starter homes, then that causes friction in the market.
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