Where Did The Listings Go?
My how things have changed, a year ago, the market was flooded with homes. From foreclosures to pristine mansions, the marked starved for buyers. Listings stayed on the market for months, frustrating Sellers and Realtors alike. It was common to find owners lowering the cost of their home just to get people in the door. The market is much different today. Listings have dwindled. What appears on the market is gone within days. Multiple offers, selling at list price or above are now almost a standard modus operandi. Why are there so few listings?
New construction is on the rise however, it lagged for such a long period that inventory shrank. The last time new construction homes were at this level, was back in 1959. The economy has been tough especially for builders. They should catch up by the end of the year. This is good for buyers searching for new constructed homes yet not everyone is looking for a brand new home. Previously owned homes can be less expensive and the buyer has the advantage of determining how the foundation is holding up to the extreme north Texas soils.
The sparse listings are driving up home values. Sellers underwater with loans are seeing the uptick in home prices so they are not motivated to sell now. The longer they hold on to their property the more equity they will amass. If the trend continues, more loans that are underwater will disappear. Banks are also not forcing the issue. Banks are delaying the release of foreclosed properties because of the rising prices. When prices raise enough underwater sellers will place their properties on the market and banks will release more foreclosed homes.
The Government has also played a role in this current market with housing policy, laws, programs and incentives focused on stimulating demand and restricting supply. The feds have kept interest rates low while mortgage crises programs such as HARP and HAMP are very successful in keeping owners in their homes. All current legislation geared for people keeping their homes and none towards buyers and those desiring to sell their abode.
The market is always changing and this condition will not last forever. Come spring and summer we should see an increased number of homes on the market. For more information about north Texas Real Estate, please visit http://www.djlyons-realtor.com . See ya down the road!