Decline in US homes for sale, sellers want high prices
16th May: More and more homeowners in the US are shying away from selling away their houses until they get the right price.
This is despite repeated efforts by brokers and real estate agents to coax reluctant homeowners to sell.
Scarcity of home sellers in the US–There are no sellers, allege a large number of US real estate agents. According to figures revealed by NAR (National Association of Realtors), there has been a decline of 22 percent in the number of US homes for sale in March as compared to last year. Total number of homes registered for sale went down to 2.37 million.
And this is a sheer downfall from the figures for summer 2007 when nearly 4.04 million homes were on the sale list.
There is a huge shortage of homes in the US, especially low priced houses, said chief economist of NAR, Lawrence Yun. Although, there are plenty of homes throughout the US, but in Washington, the opposite is true, says Yun. Washington is having shortage of homes in the lower price range, he maintains.
According to a real estate agent based in San Mateo, California, Phyllis McArthur, he has been busy asking homeowners to sell their properties bought nearly four decades back. But the response has been negative so far, adds McArthur.
All this reveals that the US housing market is highly competitive, especially in San Francisco, Washington, D.C., and Phoenix. Sales of homes have touched all new lows, states Glenn Kelman, Chief Executive Officer of Redfin. And the reason is a scarcity of home sellers and not the lack of buyers.
It’s buying time—The fact that the US homeowners are unwilling to sell their homes right now is because there has been no price rise of homes.
They are unwilling to move and this is due to the fact that they are hopeful of better worth of their house after a year or so as compared to what it is now, says chief economist of Mortgage Bankers Association, Jay Brinkmann.
As per the NAR, investors purchased 22 percent of US houses sold in the initial quarter due to increasing rents and bargain prices. And this shows an increase of 21 percent as compared to last year. So, with exorbitantly lower rates of interest accompanied by increasing rents make it a perfect time to buy rather than sell any property, says managing director of a Pacific Investment Management Co, Mark Kiesel.