The Buying and Selling Paradox

By: Jorge Lopez, April 29, 2016

The housing market is in something of a paradox: selling a home is much easier these days, yet it’s becoming increasingly difficult to buy a home.  As a result, some sellers are choosing to stay put while others are resorting to tactics that allow them to sell their home without the risk of ending up potentially homeless.

This begs the simple question: why?

With the lower housing inventory, the homes that are placed for sale on the market with a competitive price and don’t have any major flaws are seeing a substantial amount of interest, resulting in a possible bidding war. Buyers that are particularly aggressive could make preemptive offers that are significantly above the home’s asking price.  Essentially, it’s a great time to sell, but perhaps not so much a good time to buy.

There are glimmers of good news however.  Builders are attracted to markets where there is lots of activity, meaning there is the possibility of increased supply and therefore a potentially healthier marketplace.  For the time being, inventory will continue to remain tight.

Some homeowners are continuing to sell, albeit with a post-sale mindset that might be a little different than what may be considered typical.  One example of this is someone that chose to move in with relatives after successfully selling their home.  The idea may seem odd, but if there is vacant room available while searching for a new home, it’s not entirely far fetched.

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