Thursday, October 4, 2012

Reluctant Sellers Holding Up the Market?

While home prices are making gains in many markets, many home owners continue to wait for home prices go up even further before wanting to list their homes for sale, Inman News reports. As such, inventory levels have been tightly constrained in many markets, resulting in shortages of available for-sale listings. 

I myself have seen the consequences of this on buyers: reasonably-priced houses whisked away as soon as they're put on the market; multiple bid situations making buyers feel pressured (or at least frustrated if they lose); and not much inventory to choose from.

"Many sellers are still not aware of how strong our market is," Charles Roberts, co-owner of Your Castle Real Estate who serves as a director on the Denver Board of REALTORS®, told Inman News. "They still think it's a bad market to sell. Our job is to inform them about the market and explain to them that with a rising market, it has become a strong seller's market and to walk through their options."
In many areas, it’s a seller’s market right now, and that surprises many home owners, adds Jason Lopez, a broker at Atlantic & Pacific Real Estate in the San Diego area.
“Now it doesn't mean prices are skyrocketing like past cycles, but with the chance of multiple offers, it makes the process more appealing,” Lopez told Inman News.
And prices may never skyrocket like they did - tough lessons learned are better not repeated. 
So sellers, right now would be an excellent time to sell your home. Why? 
1) You have very little competition from other sellers. 
2) Prices have gone up, so you can price well. Many of my sellers were surprised that their home sold recently for what it could not get close to selling for 1-4 years ago.
3) Buyers will look at your house because of the low inventory, and if you're priced well in your market, you will get multiple offers! It's hard to say how long this seller's market will last.