As we move through the Spring season, we keep getting more good news. Nationally most the real estate news is good, and the Mid-Hudson Valley is conservatively following the same pattern as the nation. The only negative news seems to be the continued low inventory levels that are keeping the numbers down to a lower level than they would otherwise be.
I was reading a survey that was conducted by an Association of REALTORS® in a Midwestern state (not New York) that showed that the reasons that homeowners are not selling have drastically changed over the past few years.
In 2012, the most common reason for not selling was that homeowners were waiting to sell for a higher price, with 59% selecting this response. The next most common answer, concerns about the economy, came in a close second with 56%. 50% indicated that would-be sellers' homes were underwater. In a distant fourth, only 16% of survey participants indicated that potential sellers weren't selling due to a lack of homes to buy after selling their home.
Compare the 2012 responses with those from last month's survey, and the changing attitudes are dramatic:
May 2015 Responses (change from 2012 in parentheses)
1. No homes to buy after selling: 67% (+51%)
2. Homes underwater: 31% (-19%)
3. Waiting to sell for a higher price: 30% (-29%)
4. Concerns about the economy: 20% (-36%)
The huge increase in homeowners reluctant to sell due to inability to find a new home reflects the ongoing inventory shortage in the housing market. However, the results also show that confidence in the economy has risen substantially among potential home sellers in the last four years.
Change takes time. We've already seen significant change. Real estate is all about supply & demand, Econ 101, and it tends to even itself out and find a state of equilibrium. That said . . . it is a good time to sell, and a good time to buy.
