There are a number of factors contributing to lack of homes for sale right now, including a substantial minority of potential home sellers would rather take an all-cash deal than a higher offer that involves the buyer getting mortgage financing, a survey from real estate broker Redfin found.
And a company executive said it is not because people are underwater on their mortgage that is holding back putting properties on the market, it is simply because people don’t want to sell right now.
The survey also found 80% of respondents believe their homes would fetch a
Still, the economy remains a major concern, with 40% saying it is influencing their decision on when to sell. Just 13% said it was a good time to sell but 61% said it is a good time to buy.
Redfin said that without more people willing to sell, inventory will not increase and therefore sales volume cannot meaningfully improve.
Glenn Kelman, CEO of Redfin, said, "The would-be sellers we surveyed have made it clear that inventory is not going to meaningfully increase any time in 2012, which will limit sales volume gains—and the lift that real estate delivers to the economy this year. We believe the main problem is not, as conventional wisdom would have it, that people can't sell because they're underwater on their mortgage.
“The problem with sales volume is that most homeowners just don't want to sell. And why would they? Most sellers believe prices will only get better over the next two years, and many can now rent their place for more than their monthly mortgage payment.”
