Over the last few years the housing industry has seen an increase in demand from buyers, yet a reluctance from homeowners to sell their homes. After the housing crash I can't necessarily blame people for wanting to hold on to their most prized possession. I mean, what reason do they have to get rid of it? They were able to lock in extremely low mortgage rates thanks to the Feds response to the crisis. At most homeowners have opted for a mortgage refinance or have started to use the built up equity in their homes to begin much needed or desired updates. Most people, including my own friends and family, have been inspired to fix up their homes by all the flipper shows on HGTV. Buy a home, live in it for a few years, fix it up, sell it for a huge profit! The guys on TV make it look so easy, if they can do it any one can do it right? While a good idea in theory, in practice many people overlook what makes those type of sellers so successful.
Most homeowners stay in their homes for 3-5 years, while flippers typically own their homes for 9-12 months before putting them back on the market. The time difference here is huge. Flippers know the game is one of a short time period, not a buy and hold. Too many homeowners still haven't gotten over the crash of '08 and are too reluctant to actually get their house on the market, even after repairs. Again, can't blame them entirely. Many people, even real estate agents, are whispering in their ear "no end in sight to the rising home prices!" As a homeowner I could only agree and think holding onto my home is the best strategy, after all its increased in value a lot since I bought it, I really don't need to move, so why not let it keep growing and sell before the market drops?
This is something I would see all the time within the financial realm, people trying to time the market. Honestly, its never a good idea, even if you "know what you're doing." There's so many factors that go into putting a home on the market at exactly the right time that it's almost impossible to get it right. Its never what you get that undoes your plans its what you forget. What most people forget is that the pool of buyers gets smaller every time the house's value gets bigger. Couple that with rising interest rates and you have a recipe for disaster. Its similar to being up at a casino and instead of walking away with your winnings you keep playing cause its been working thus far right? THE HOUSE ALWAYS WINS. If sellers continue to wait to list they will have few buyers willing to pay. If you don't have buyers who are able to pay then demand drop. When demand drops prices drop and they will drop fast. If you can sell tomorrow and make 80k take it. Don't wait to make a 100k and end up breaking even simply because you thought you could outsmart the market. As an agent my job is to ensure you get the most out of your home that you can possibly get. If I'm saying to stop waiting there's a good reason for it! No one is smarter than the market, NO ONE. don't let greed overtake rationality. The market has never been a better sellers market. If you are thinking of selling, stop thinking and start doing. Next year could be too late.