Most analysts, even those who do not foresee a mounting bubble, anticipate a slowdown in both home sales and the rate of price increase. Sales of existing homes increase debt because the home seller’s cancellation of debt on sale tends to average less than half the size of the mortgage origination of the buyer of the home.
The difference, the net debt increase on the home upon sale, has historically closely approximated the realized capital gain on the transaction. Increases in debt from turnover tend to exceed those from the extraction of equity, most generally of unrealized capital gains, through cash-out refinancing and home equity loan  BIS Review 60/2004  1  extensions.