Thats right where are the homes? September of last year there was a surplus of 8.9 months of homes on the market for buyers to pick and choose from now a year later there are only 2.32 million homes activlt for sale which equates to a 5.9 month supply. So what is driving the downturn of available houses for all of the buyers who are ready to get into the market. This is a good question and the answer is sellers just aren't as motivated to sell. Some can afford to wait out the price correction as prices show a promising rise as inventory shrinks. Even home owners that are underwater are finding that prices for properties are increasing and are trying to hold out to see if the trend continues to even out home values. Homes that are priced to sell are selling quickly and the sellers as well as buyers realize this. We are not at a point to be over joyuous that things are going to sell. If the home is not priced right it will still sit on the market for a longer period of time. Even many flippers are holding properties for rent instead of flipping because the rental markets right now are hot as again supply has become sparce. Even foreclosures, shortsales, and REO owned properties are moving well and the foreclosure market due to legal problems has slowed somewhat. There are many homes out there still being held by banks but the process is slow and some of these properties will be sold to investment groups so they really won't even be seen by the average buyer. Those that do hit the market are attractively priced so they are fair game for an investor or cash buyer or buyers with great credit. So the message is for sellers to price property correctly for a quick sale. Buyers, cash goes a long way in motivating a seller and you need to move quick if you see a property that you like that is priced competativly and look for a tight market as banks start loaning and the recovery progresses.
Author:Michael Bray Phone: 915-549-1770 Dated: January 22nd 2013 Views: 2,914 About Michael: ...
View our latest blog posts in your RSS reader. Click here to access.