Are Sellers Expecting Too Much?

Here is an excerpt form The Cromford Report:

“Here we are at the beginning of April and active listings are still increasing. However demand is almost able to keep up with the arrival of new listings and the rate of increase is small. In most years the demand in March is far too strong for active listings to increase. However once the spring buying fever eases, usually sometime in June, active listings start piling up again and continue increasing until the end of November. The fact that we have still not reached a high point in active listings shows us that 2014 is already proving to be a weak year for sellers. If we continue with the current trends then total active listings are likely to reach at least 35,000 by November. The count could go higher because new listings are arriving at a rate which is about 10% higher than last year.”

“Overall demand is no longer falling, but it is not rising much either. We will need to see a much more forceful increase in demand to get us back out of this buyer’s market and into balance again. We are looking carefully to see if we can report the first sign of that happening, but at the moment the market has stabilized and is showing little sign of change.”

If you have been thinking of listing your home, do it before the inventory increases even more as the higher the inventory, the less flexibility you will have on getting your price.