Anyone want to buy a dream home?
With so many homeowners deep in debt, and so many more worried about the national economy, few people want bigger houses at current prices. Furthermore, without that midlevel demand, there will be no steady increase in prices, said real estate agents and analysts interviewed last week for the North County Times.
In a traditional market, a segment of homeowners, with rising incomes and growing families, would sell their older places and use the profits as down payments on larger, more comfortable homes. But with local house prices well down from a 2007 peak, potential move-up buyers carry mortgages larger than what they could get selling their houses.
Also, local buyers may have a new outlook on housing: With so much uncertainty in the economy, they may decide their current houses are big enough.