3 Reasons Why Home Sellers May Miss the Boat

With home prices steadily rising in most areas of the country, a lack of inventory of homes for sale, and plenty of demand from buyers before the spring selling season even begins, some home sellers may find themselves missing the boat all together.

If you follow the hosing market regularly, you may have noticed a change of tone from the media. What was once a negative topic no matter that stats has now become the darling of the economic recovery. With a bounce back of nearly 10% across the country, many sellers are finding themselves with the upper hand in their negotiations. In fact the National Association of Realtors found that nearly 6 out of 10 homes received multiple offers in 2012. That trend is likely higher today and will likely continue until more sellers decide to list their homes for sale.

So why might some would be sellers miss the boat here?

1. Betting on Future Home Prices

Betting that home prices will continue to increase at this pace is what happened in the late 2000’s which caused many too over reach and ultimately suffer great losses. A seller waiting a few months for a higher price may find the market begin to soften and could potentially lose some of the equity one currently has.

2. Mortgage Rates

Competition has been fierce for the better part of a year and many are offering significantly over asking price to secure a property at current prices and especially at current interest rates. Mortgage rates have also been increasing which in turn lowers the buying power of financed buyers. A continued rise in rates may sideline many buyers in the market and level off the demand.

3.  Spring Selling Season

Historically, Spring is the most active time of year for real estate. Families decide to make a fresh start and put their home on the market. By default, this may be the same reason why the housing market may begin to see a balance between supply and demand. As more sellers list their homes for sale, buyers will then have more options to choose from. Therefore tipping the scales back in favor of buyers or at the very least reining in home prices from speculative sellers.

4. New Equity (Bonus)

As home prices have increased to their best levels in years, many homeowners who had been trapped with no equity have seen their luck change. For the first time since the housing crash, these homeowners have the ability to sell. Adding more inventory to the market.

Bottom Line

Although no one can accurately predict what the housing market will do in the future, we can only act on the information we currently have at hand. Buyers in today’s market are ready willing and able to do what it takes to get their offers accepted on the few properties for sale. This is an opportunity that may or may not last. Should it end in the months to come, many sellers will find themselves missing the boat.

Share your thoughts! What do you believe the market will do in the near future?

About Daniel Di Matteo

Realtor at CENTURY 21 Award, Daniel was Voted U-T San Diego’s Best Real Estate Agent in 2014. A Husband, Father, and most recently, accomplished Blog writer, which explains your visit today.