Why Aren’t Homeowners Choosing to Sell?admin / 0 Comments /
According to the latest home sales data, it’s a great time to sell a home. Home prices have been increasing at a steady pace, there is very low inventory which means less competition for sellers and homes are selling, on average, in around 51 days or less in the fastest-selling markets.
Yet, the National Association of Realtors (NAR) is reporting a 3.2 percent decrease in existing home sales in July 2016. According to Lawrence Yun, NAR’s chief economist, “Realtors are reporting diminished buyer traffic because of the scarce number of affordable homes on the market, and the lack of supply is stifling the efforts of many prospective buyers attempting to purchase while mortgage rates hover at historical lows,”. This begs the question, why aren’t many home owners trying to sell their homes?
In an article published by The Washington Post By Ilyce Glink and Samuel J. Tamkin, five reasons have been identified:
- Homeowners still need the space in their current home to accommodate older and younger generations moving in.
- Babyboomers, who have yet to retire, still want to live close to their jobs.
- Living in their current home is still less expensive than moving to a new, even smaller, home.
- Some homeowners still owe more than their house is worth, or have such little equity, they are “functionally underwater” after factoring in the cost of selling and moving.
- Home owners simply have not found another home that they would like to purchase and, therefore, have no incentive to sell.
Read the entire article.