low inventory. What's in the near future? (Realtors, sellers, borrow)

[oh come on!]

Inventory is 1/3 what it was in 2007, and prices are way up. But people are not selling.

Do you think homeowners even know they can get a high price for their home? It feels like they're out of the loop and holding onto their home for dear life when in reality, my market is way above its 2006-07 peak already.

Any of you been in the business long enough to see this happen before?


I'm preparing to send out mailers to hopefully try to motivate some owners to sell.

[MikeJaquish]

So, they sell. Then what?
Many folks are gun shy after the debacle. Less motivation to move up.

Why spend a lot of effort for a lateral move, if they are content where they are?

[oh come on!]

There are plenty of people who could downsize and convert that equity into liquid cash and enjoy the rest of their life.
Some people are widowers or widows. They could use an endless vacation.

Checking the public records, I noticed some people taking out helocs. They'd rather take care of bills by borrowing and paying more interest instead of liquidating.

I wasn't in the business during the last seller's market before the crash. But isn't the problem the same- Sellers sell high, but everything else on the market is high, so "then what" ?

[Electrician4you]

Originally Posted by oh come on!

Inventory is 1/3 what it was in 2007, and prices are way up. But people are not selling.

Do you think homeowners even know they can get a high price for their home? It feels like they're out of the loop and holding onto their home for dear life when in reality, my market is way above its 2006-07 peak already.

Any of you been in the business long enough to see this happen before?


I'm preparing to send out mailers to hopefully try to motivate some owners to sell.

Ok so what happens after they sell? They either rent or are priced out or have to buy at higher price with a higher payment. I have properties and get offers in the mail or calls frm realtors or investors to sell. I just shred the mailers or say I'm not interested.

A lot of people are in the can't sell zone. They are still underwater.
Some won't sell because there is no advantage for them to sell. The house is paid off low taxes. Why would they sell?

[NinaN]

Our inventory has quadrupled since last year. From .8 months to just over 3 months supply. But prices are holding steady at the peak price from last year. I guess the sellers here are liking the prices, though lower than the peak.

[davebarnes]

Sell so you can live in a double-wide (your 2 cars) in the Walmart parking lot?
No thanks.
In Denver, you sell and you are homeless.
Record low inventory. Measured in weeks, not months.


Sell and give up your 3.5% mortgage?
Why?

[Pfhtex]

Originally Posted by oh come on!

Inventory is 1/3 what it was in 2007, and prices are way up. But people are not selling.

Do you think homeowners even know they can get a high price for their home? It feels like they're out of the loop and holding onto their home for dear life when in reality, my market is way above its 2006-07 peak already.

Any of you been in the business long enough to see this happen before?


I'm preparing to send out mailers to hopefully try to motivate some owners to sell.

Your premise seems to be highly localized. What zip codes are you referencing?

[eliterun]

Low inventory is a problem only in a few cities, ones that are dealing with a return bubble, LA, San Francisco, Seattle, Portland, Denver, etc.

Not a problem in the majority of Midwest, Southern, and some Eastern markets. Only a problem in markets where the metro area is hemmed in by growth boundaries, natural or man-made.

-Financial Analyst for Bay Area market, lived in Kansas, live in Raleigh-area now.

[oh come on!]

Originally Posted by davebarnes

Sell so you can live in a double-wide (your 2 cars) in the Walmart parking lot?
No thanks.
In Denver, you sell and you are homeless.
Record low inventory. Measured in weeks, not months.


Sell and give up your 3.5% mortgage?
Why?

That chart is what my town's looks like.

When was there a time when you sold and weren't homeless in a seller's market?

Originally Posted by Electrician4you

I have properties and get offers in the mail or calls frm realtors or investors to sell. I just shred the mailers or say I'm not interested.

Just need a few interested parties.

I'm targeting those with lots of equity. Sent out 8 letters 2 days ago, and already got one call back.

[SmartMoney]

We've also cut the available buyer pool by at least 25 - 30% (not official numbers, just a guesstimate, it could be higher) due to new lending restrictions. When you can't average income or can't count someone's hours due to lack of history, you have fewer eligible buyers.