This is certainly true. The stagnation is what is causing low sales volume.
Every home owner in America has a 2 - 3% mortgage rate while today's rate is 7%. And they are sitting on equity gained during 0% interest era. There is no reason for sellers to sell. If they sell and buy again, they'll change their rate from 2-3% to 7%. No one is stupid enough to do that.
And buyers can't afford the massive increase in home prices during covid plus 7% mortgage rates.
So we have a stalemate. Hence, home sales keep on falling. The only group selling are institutional investors such as Blackrock or Opendoor because they need to free up cash.
