After a stellar year in 2012, the real estate market is experiencing a historically low supply of listed properties all over the country. An article by CNBC’s Diana Olick discusses the current state of the market and cites several potential factors contributing to this painfully low inventory. According to Olick’s article, listings are down 17% over March 2012 and potential contributing factors include that many Americans owe more than their property is worth, so a move could incur a great expense, which discourages homeowners from listing their property. Also, as home prices rise, many potential sellers may be waiting to see how high the prices will go before listing.
However, despite the low inventory, the pending home sales index is up 7% over March 2012, predicting an increase in closing sales. Across the country, pending home sales are inching upwards with the west seeing a 1.5% increase and the south is up 2.7%. The east coast stayed the same and the midwest is up 0.3%.
With home prices rising and an abnormally low inventory, the market is experiencing a fantastic season for sellers! Riskin Associates, Montecito’s #1 selling agent represents properties of distinction in Montecito.