Roseville, Calif. – Many Sacramento area homes are selling quickly because there continues to be low inventory of properties for sale. So why are homeowners reluctant to put their houses on the market?
I believe the answer is pretty simple, they know they will be facing the same low inventory and financial/loan issues as home buyers.
According to Lawrence Yun, the chief economist with the National Association of Realtors (NAR), “Realtors are reporting diminished buyer traffic because of the scarce number of affordable homes on the market. The lack of supply is stifling the efforts of many prospective buyers attempting to purchase while mortgage rates hover at historical lows.”
House Sellers on the Fence
According to a recent article there are several reasons for the cautious seller attitudes.
Financial
Most sellers have refinanced their homes and staying where they are may be the most logical financial decision. In addition, depending on when they purchased they may have little to no equity to transfer.
Lifestyle
With the current economy, many sellers are staying in their current home because they can’t retire and want to remain close to their job. They may also have young or elderly family members living with them and are not able to downsize.
Options
Sellers may have the upper hand, but they face the same problem as buyers: lack of inventory. Many sellers can’t find another home they like, or one they can afford, and are choosing to stay put for the time being.
If you or someone you know would like to sell and buy a new home but are hesitant for any of the above reasons, I would love to discuss their options. I may be a bit harder to find that perfect home but there are some proven strategies which can make the time of a sell and buy work.