Okay, that seems like an obvious question. Why is the homes for sale inventory so high? You’d probably say, it’s because no one’s buying!
Not exactly true. The drop off, in Boston, at least, is about 25%, or less.
However, we’ve had a 50% increase in the number of listings, on the market (an increase from around 2,000, last year, to 3,000, this year).
Can the increase in inventory be attributed, solely, to the accumulation of additional properties on the market, over the past twelve months?
I’m not sure. I haven’t done an analysis, but I don’t know if I can say for sure that the inventory is simply due to a build up of supply.
I wonder whether more people are putting their homes on the market, than did, in previous years.
Why would they do this? Perhaps some sellers are thinking long-term. Maybe they are saying to themselves, well, I want to move sometime over the next year. It might take six months or longer, to sell, because of the slower real estate market, and because of the high inventory, so I’ll list my property, now.
This, of course, becomes a self-fulfilling prophecy. Sellers fear there is a glut of properties on the market, so they put their home up for sale, increasing the glut!
Sellers may also be panicking – oh my god, the market is collapsing, I have to list my property, now!
I’m not sure.