I track my local market very closely and have done so for about 3 years now. Lately I have noticed that inventory seems to be falling pretty quickly. It typically starts falling around November due to seasonality but this year it started dropping in Juy. Inventory in my area is currently back to the level it was in early May. As a point of comparison, in 2005 inventory incresed by over 50% between May and November. I suspect that sound you hear is unmotivated sellers running for the exits and digging in their heals for the long run.
If I were a seller I would keep ot on the Mkt. Putting a listing in the spring will just add insult to injury.Drop the prices 25% and the buyers will be there .
It seems like many of the current sellers are not very motivated anyways. All we need is 10% (just pulled that # out of the magic hat) of the seller to be super motivated to move the price. So, we’ll see if the # of people who have to sell because of loan reset will be higher than the # of buyers out there. That’ll move the price in the right direction.
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