“Two women, early 30s, decked out in fitness gear, fast walking. (Turns out they ended up walking into their workplace, a mountain equipment co-op office. This has little to play in the anecdote but sets the lifestyle scene up well.)
They are speaking about moving: “We’ve lived in the west end for eight years, three years in the place we are in now, but it is so expensive to sell your place. I looked into it, realtor’s fees.. we’d like to move east but it costs so much to sell your place.”
I believe it will be much cheaper than the equity lost over short term, no? I imagine falling prices will also keep these sellers off the market but how many people want to be getting out of the market? I seem to overhear RE discussion on the streets I walk more and more often.”
– anecdote from Aldus Huxtable, via e-mail to vreaa, 27 Dec 2012. Aldus also adds “I have been back in van for a few weeks after a few months away. Sentiments have changed.”
We agree with Aldus. The cost of the trade, while very substantial in RE markets, will pale into insignificance compared with the price drops. These ladies weren’t clearly discussing getting out of the market, though; rather, it seems, a lateral move.
It is possible that “it’s too expensive to sell” may become one of the stories that owners who ride the market down will be using to assuaging themselves.