Lack of inventory making sellers hesitant to list, agents report
It’s the chicken or the egg scenario.
Nearly two-thirds of real estate agents in a recent survey reported that the largest challenge facing their sellers today is the lack of inventory on the market, as potential sellers are afraid to list in case they won’t be able to find another home to buy. And 47.5 percent said that their sellers have an unrealistic expectation of what their home is worth on today’s market, thinking their homes should sell for more. Thirty-seven percent of agents said that their seller’s home is unable to appraise for the contract home purchase amount.
However, 20.5 percent of agents reported their sellers have faced no major problems, and have it easy.
Agents also reported that homes are selling faster this year, compared to last year, according to 56.2 percent. Nearly 54 percent reported that housing market competition is much more intense compared to 2016, and 37.9 percent said buyers are more aggressive this year with their offers than last year.
One-third of agents reported that this year’s season began earlier than last year, and 28 percent said sellers are more demanding this year, compared to last. Due to lack of inventory, buyers are more willing to compromise so far in 2017, said 26.1 percent.
Despite homes moving off the market so quickly, not all buyers are putting down 20 percent. Sure, 35.7 percent do, but 21 percent of buyers put down 10 to 19 percent, 5.1 percent put down 6 to 9 percent and 25.2 percent put down only 3 to 5 percent. Fourteen percent put down more than 20 percent.