What does anyone think the reason is that we have a lovely healthy supply of buyers with such a very low inventory?

Asked by Anita Rich, Studio City, CA Fri Nov 23, 2012

Is it possible that sellers are not aware that buyers will pay a fair price and value ?

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James Sanchez’s answer
James Sanchez, Agent, Burbank, CA
Sat Nov 24, 2012
I think an other reason to add is the time of year... Yes interest rates are low for buyers, which adds buyers..... But, on the sellers side, any one that has been in the market longer than a year knows that this time of the market slows down. No one sells houses during this time of year, compared to spring and summer time. Banks are slowing down on REO's for now. Short sales still, no matter what banks say take at least 3 months. People doing short sales most likely are buying time for the holidays and trying to post pone listing their home for sale as long as possible. Regular sellers are starting to see some profit being made but it is still a small margin, considering when you ask them they always compare todays prices with the artificial prices of 2006.
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Cindy Davis, Agent, San Diego, CA
Sat Nov 24, 2012
There are several forces that have created this issue.

Mortgage rates are at incredible lows which has prompted many buyers to get off the fence and think about the buying.

On the seller side, foreclosures have shrunk dramatically while investors have bought up the foreclosure inventory that does exist. Short sales sit in the 'contingent' status for months, and are thus, not available.

Lastly, the traditional buyers that are able to have been holding on until the market picks up. We have seen prices turn up this year and the predictions for 2013 are even better. So - inventory has been drastically reduced this year...

I hope that as prices come back that more sellers will put their homes up for sale. Look for the first uptick in inventory in March/April of 2013.

Take care Anita.
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