John Lansner's blog article today highlights an important point that the inventory of available homes (aside from distressed property sales and foreclosures) has jumped only 2% (326 additional homes) since the beginning of 2008. This is largely due to the fact that, like prospective home buyers, so-called discretionary home sellers are sitting on the fence too. They know that now is not the right time to sell their homes.
Discretionary home sellers intend to to wait it out until all of you fence-sitting, NAR-scarred, prospective buyers play it out.
1 comment:
It's going to take a while for the realities of the market to sink in. Some homeowners are waiting for the 2005 prices to come back, (but eventually they will realize that isn't going to happen for 10 - 15 years.) Eventually, when they start seeing that what they want to move up to has dropped relative to what theirs will sell for, we will start seeing some discretionary sales again.
Of course, even those who put down 20% in 2004 and had non-toxic loans have lost most of their equity, so they really can't buy up with today's conservative loan programs. And many of those who bought a long time ago, took out equity loans to remodel, so they are stuck too!
Today's market pretty much sucks for both buyers and sellers!
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