Record Low Inventory Still Has Many Homeowners On The Sidelines
With housing inventory sitting at record lows, both buyers and sellers have different feeling and concerns about the current Bay Area real estate market. Many buyers and sellers continue to be concerned, frustrated and perplexed by the current situation. Meanwhile many would be sellers still linger on the sidelines fearing that they will not be able to find a replacement home once they sell.
The overall predicament can be viewed as a classic Catch-22. Some potential sellers will not put their home on the market fearing that they will not be able to purchase
in a reasonable amount of time. Sure they can demand a seller’s contingency to find a home but that limits the desirability of a home. If a seller wishes to move to some Caribbean nation, Mexico or even Las Vegas then they will have no problem locating a replacement home.
How Have Buyers Altered Their Buying Strategy?
Buyers, on the other hand, have a much more challenging task. The task has been so daunting for some that they have given up their search. Redfin offered up some interesting statistics for buyers in (or not in) the current market. Some buyers have shifted their goals in response to the low inventory to look in other areas, other are willing to pay more while some have taken a break.
Don’t expect the low inventory to last forever. Eventually banks will release some additional REOs and things will loosen up.