Best 30 year Fixed Mortgage Rates todayThe Best 30 Year Fixed Mortgage Rates Today
Today, what is a good 30-year fixed mortgage interest rate?: personnelfinance
While this is one of the levels of latitude in the economics of home market puzzles, as /u/TheOrangeFuhrer stressed, there are others. As an example, some vendors certainly don't like the lower $$ assets for which they could be selling their homes in your script, and therefore decide not to be selling (or simply to raise their prices and know that they might not have any offers).
Of course, this reduces the choice of homes, which raises the price (which counters the trends you mention and makes things a little more even). At some places it is extremely hard to buy a home, even if you have a great deal of it. Elsewhere, the populace is declining or many move into new housing, making it relatively simple to buy an older one.
Equilibrium of price - decreasing - causing - credit cost -went-up vs. price - not decreasing - less - offer - at lower - price will differ depending on markets. edit: I noted that some vendors will not like the lower $$ value of the sale of their homes. I am near a new build super quarter that began around 2005. You' ve seen almost 100 homes per year until about 2011 and are still making new ones (although it looks like you' re only doing about 5 per year now because the pace of the downturn has been so slow).
Throughout the world of $200k to $350k peoples were paying for those homes, subject to exactly when they were buying (things were insane in ~2007 versus 2005). Looks to me like homes that were bought in 2006-2007 for like $300k are never listed for less than about $270k, but the pristine builders are still selling new build homes that are ~identical layouts and lots. What's more, they are still looking to me for a new home.
That new build one will be recorded for $220k today. Nearly no one would buy a 10-year-old home for $270,000 for an identical new building for $220,000, but many vendors are just not willing to take as much of a loss on their home so they really listen up.