Benched Sellers Testing South Florida Waters

So-called "sidelined sellers" who have been trying to wait out the housing downturn appear to be testing the waters in South Florida. Just as the resale market in the three-county area that includes Miami-Dade, Broward and Palm Beach counties is starting to show signs of life, "a small but increasing number" of patient owners have put out for-sale signs in front of their houses and apartments, according to a new report from Condo Vultures, Bal Harbour. So far in June, the number of listings has increased week-over-week, to nearly 66,400. Seven weeks ago, 65,100 residences were for sale. "Some of these sellers are patient owners who still have some equity in their homes and would like to move but not necessarily unload at a foreclosure-like price," said Peter Zalewski, a principal in the consulting firm. "It is premature to call this the beginning of double dip but it is worth monitoring." According to Zillow economist Stan Humphries, who coined the term sidelined sellers, there are more than 5 million "highly motivated" owners like those in South Florida just itching to sell once they sense a rebound. He believes that as they enter the market, they will serve to stifle whatever rebound in values might have otherwise been building.