It’s yet more evidence that the drop in inventory – which has been a hot topic on this blog – is much more than just a seasonal blip.
The big question now is whether the dearth of homes for sale will send the market back into reverse or will self-correct as more sellers get off the sidelines.
The shortage of homes to choose from, at least in the short-term, is helping stabilize prices.
But at some point, will buyers simply throw up their arms in frustration and put their house hunting on hold?
Here’s a section of the Globe piece that deals with this issue.
Tim Ellis, Redfin’s real estate analyst, said a continued lack of available homes can slow sales.
“It is really just being a big damper on the whole market,” Ellis said. “Buyers are really frustrated right now. They look at all these homes but there is not much to choose from.”
Then again, maybe this is a lot of hand-wringing over nothing – as sellers see homes snapped up and prices edging up, more will jump into the market.
That, anyway, is what a top local Fed economist told the Globe.
“Once people see houses are selling quickly, they will start listing their properties,” said Paul Willen, senior economist for the Federal Reserve Bank of Boston. “It is a self-correcting thing.”
So what’s your take? Is the inventory shortage self correcting? Or are other factors – Europe, a still shaky economy, underwater mortgages – likely to keep sellers on the sidelines.
After all, most sellers are not going to pull the trigger unless they think they can move up to a better house, kind of a difficult proposition right now given the choices out there.
And selling in order to become a renter isn’t exactly all that appealing either, with rents continuing to soar.
Frustrated buyers, here’s your chance – fire away.