California home owners "stuck"?
We're noticing a phenonemum right now in our Southern California housing market. Some sellers are "stuck" in their homes!
As a home seller, they are able to reap the benefits of the high prices in this record-setting real estate market.
Then, one or both of the following factors come into play:
(1) The amount capital gains tax that would be due on the sale; and/or
(2) Trying to find a home to buy - and having to pay the high price of whatever home they would want to buy.
The California home sellers who are able to benefit in this market seem to be those who can move to a less expensive area ... say, out of state! We've observed that those sellers are able to buy a property out of state, and actually "bank" money from the sale of their California home.
Demand in the less expensive states is rising, partly due to people who are selling their California home and looking for less expensive housing and a nice community to live in.