Lots of people are stuck in homes they no longer want to live in.
From the NY Times: “You hear a lot about foreclosure and the thousands of families who are being forced out,” said Joseph S. Tracy, director of research at the Federal Reserve Bank of New York. “But that is swamped by the number of people who want to sell their homes and can’t."
It is starting to have an effect on worker mobility and people are now turning down promotions and job transfers.
The United States is a very mobile society. Our economic success has been, in part, attributed to the fact that workers and entrepreneurs strike out for a new start, often in a new place. The current housing problem has slowed that down drastically and that has a ripple effect on various other segments of our economy.
Home prices have risen too fast in most markets and now the inevitable correction is happening. But, may homeowners are resisting, refusing to sell at the market price because they "think" their homes should be worth more. It's time for people to come to grips with the fact that their homes just aren't worth what they thought they were.