We all know there’s a long-term supply-and-demand housing problem in Massachusetts.
There’s simply not enough housing being built to cover the needs of a steadily rising population and society’s changing demographics. But the current inventory of homes for sale has been actually going down lately, suggesting it’s not just about lack of new housing.
The Globe today tries to explain why this is happening — sellers are still nervous about the market and economy, or they’re waiting for prices to go higher, or they dread looking for a new home in today’s crazy market.
“It really is baffling that all this exceitement about homes that are selling for over asking price hasn’t brought people out to sell,” the Globe quotes Tim Warren of the Warren Group as saying.
Still, in California, the sellers are indeed starting to come back into the market. The reason: The higher prices are just too tempting.
Bottom line: Prices have to go up more to reassure and tempt sellers to get back in the market. Unfortunately for people who want to buy, it’s probably that simple.
File under: Vicious circle.