Tight Inventory Brings Opportunity For Home SellersBlog, Market Updates, Selling
According to listing service Trulia, the annualized rate of listings for sale dropped 23-29% between March 2012 and September 2012. Since then, inventories of homes for sale have declined 12-21%. Zillow, a competitor to Trulia, reported that the number of listings fell 16.6% on a single day – February 24, 2013, compared to the same day in 2012. What does the slowdown of new listings on the market mean to buyers and sellers? Rapidly shrinking supplies typically leaves communities in a heated seller’s market with less than six months supply on hand. Ironically there are sellers that may pull back from the market, believing they can sell for more money later or that they won’t find another home. Buyers may be tempted to choose too quickly, just to get into the market. Locally, inventories are shrinking more rapidly than in other parts of the country. Some sellers may delay listing their homes, which improves the market further for listed sellers. This means that many underwater sellers can list their homes and sell them without losing equity. .