Home Selling in Milpitas>Question Details

Shirley Cheng, Real Estate Pro in San Jose, CA

Why are there not enough sellers?

Asked by Shirley Cheng, San Jose, CA Thu Jun 21, 2012

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Economic uncertainty, upcoming elections, consumer confidence, and many other factors are keeping people from discretionary selling. What it means is that most of the sales are triggered by life cycle events like new kids in the family, deaths, divorces, etc. Very few people are deciding to move these days without being forced by their circumstances.
1 vote Thank Flag Link Thu Jun 21, 2012
Those that can afford to wait until the market exacts a higher price are waiting. Add to that all the short sales sitting and waiting for approval from lenders, and the foreclosures that the banks are holding into....that spells a real shortage of inventory which everyone is feeling this summer!
0 votes Thank Flag Link Fri Jul 6, 2012
Good question. My guess is that sellers who can hold off selling until the market goes up again are waiting. Add to that the millions of short sales sitting in the 'contingent' status waiting for lenders to get their act together. On top of that banks with foreclosures are sitting on them and keeping them off the market....all of that spells low inventory!!!
0 votes Thank Flag Link Thu Jun 21, 2012
If someone bought their home in the last 6-7 years the equity might be right on the edge. Especially if they did not place a substantial down payment or went in with 2 loans. I have a couple clients who would like to sell and move-up to a bigger home, but they can't get the price they need right now in order to achieve their goals.
0 votes Thank Flag Link Thu Jun 21, 2012
Shirley, that is what we are all asking.

My opinion is that many people have sold because of distressed situations. There are those who would like to sell but don't have the equity and/or don't want to compete with the multiple offers on the buy side. There are those who are content and have no desire to sell.

Those who are selling either have to due to financial reasons, job relocation, and change in family. Move up and move down. There are those who have passed away and the trust or family are selling. The rest of the people, like Allyson said, are waiting.

There are some great reasons for sellers to consider todays market which they may not be aware of. If their property is a condo, many of those condo FHA certifications will be expiring soon. Two recent ones I looked up expire in September of this year. Buyers interest rates are low and the FHA hasn't increased to 5% yet so those make for good buyers. Sellers who may have a huge capital gain may be effected in 2013 when I hear that may be increased by 3.5%. That could be a significant hit to some sellers. Inventory being low there are fewer competition for the sellers. Meaning the demand will be that much more of a benefit to the Sellers.

Have an amazing day.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Thu Jun 21, 2012
Hi Shirley, well my own opinion on this is that they are waiting for the market to go higher. I dare say that it might in the short term then I believe it will stable out or drop a bit. ( as soon as there is more inventory ) :( Lets see if any potential sellers give you their reasons!
At your service
Allyson
408-705-6578
allyson@homesbyallyson.com
Certified Distressed Property Expert
0 votes Thank Flag Link Thu Jun 21, 2012
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