Lock in effect is so real. Another thought in the same vein that myself and at least 2 close friends are in: Our homes have increased in value 25% or more. However, if we sold with that equity, we couldn't afford the same house again. Ex. Bought for 200, 3 years later worth 250, can't buy same house for less than 300. Stuck.
This is a great point - even when one part of the market is 'working' and the value of your home goes up, you can still get caught up in other market failures.
Lock in effect is so real. Another thought in the same vein that myself and at least 2 close friends are in: Our homes have increased in value 25% or more. However, if we sold with that equity, we couldn't afford the same house again. Ex. Bought for 200, 3 years later worth 250, can't buy same house for less than 300. Stuck.
This is a great point - even when one part of the market is 'working' and the value of your home goes up, you can still get caught up in other market failures.