What Has Home Sellers Spooked?
Inventory continues to be tight in many markets. So what has potential home sellers pulling back when buyer demand is reportedly so high? A recent article at CNBC suggests seller anxiety may be at the root.
"Trade-up buyers seem to be losing their mojo heading into the heart of the spring selling season," Redfin Chief Economist Nela Richardson told CNBC. "Repeat buyers tend to list early because they are most often also looking for another home to buy in the near future. A slowdown in new listings reflects a lack of confidence on the part of the home owner that they can find a desirable home to purchase."
The tight supply has, meanwhile, been pushing home prices higher. The median existing-home price for all housing types in April was $232,500, a 6.3 percent increase from a year ago ($218,700), the National Association of REALTORS® reports.
"Low mortgage rates, job growth and other drivers have stoked [buyer] demand, but the supply of homes for sale — especially in the low-to-middle price ranges — hasn't kept pace, leaving many would-be buyers struggling with a thin and increasingly expensive inventory,” says Andrew LePage, research analyst with CoreLogic.
The tight conditions are causing more competition among buyers for the limited number of homes that are for sale. Nearly 78 percent of offers written by Redfin real estate professionals in Seattle involved a bidding war, the agency reports. In Denver and Portland, the bidding war share rose to 67 and 69 percent respectively.
Source: “Why homesellers Are Pulling Back in This Busy Season,” CNBC (May 19, 2016)