As you know, the housing market has been struggling with inventory for years.
Thanks to super low interest rates and the Covid-19 Pandemic, we've seen high buyer demand over the last few years, buying up inventory left and right. This has resulted in dwindling inventory. And with limited options to buy, Sellers are hesitant to list their homes for sale, which is exacerbating the inventory problem.
Here’s what is keeping homeowners in place and why they should re-think about selling.
Low Inventory: As mentioned above, low inventory has a roundabout effect. Because there are fewer homes to choose from, some homeowners fear entering the market and not having many options. As a result, they stay put, keeping supply low.
Reality Check -- While inventory is still low, the supply of homes for sale is growing every month. This gives you more options to choose from. In addition, new construction has been booming in areas like Erie, Broomfield, Thornton, etc. Added bonus: Low inventory also means less competition when you list your home for sale!
Mortgage Rates: It's estimated that about 80% of current homeowners with outstanding mortgages have interest rates below 5%, so selling their home (and financing a new one) would mean trading their low rate for a higher one. Many would rather wait for rates to drop before selling their homes.
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https://www.sallyheldman.com/why-many-homeowners-dont-want-to-sell-and-why-they-should-reconsider/?source=2
