We are now experiencing, in most market areas, a shortage of homes available for sale. Favorable market conditions have produced a surge of local home buyers (backlog) on top of the elevated number of residential investors. This combined with fewer homes coming on the market has created a shortage of inventory in the more affordable and mid price ranges and the upper end close to job centers.
Possible Sources of Additional Homes for Sale and How to Optimize Support:
1. Sellers with Equity – there has been a major market change
- Sellers can sell their homes in today’s market
- OK to buy/sell within same market timing
- By waiting for higher prices, the next home purchased may also be at a higher price
2. Underwater Sellers – Short Sales
- Streamline response / acceptance process
- Pre-approved short sales
3. Resale Condominiums
- Move up to 70% FHA occupancy ratio
4. Home Price Appreciation – will unlock current “underwater” sellers
- Appraisal process is restraining the housing recovery
5. New Construction
- Promote presale product
- Need streamlining of land development permit process
6. Foreclosures
- No bulk sales to National investors (market by market analysis)
- Keep foreclosures available for local home buyers/investors
7. New Condominium Projects
- Need to overcome construction financing and take out home buyer financing
8. Apartments converting to condominiums
- Streamline Process
source: Lennox Scott CEO of John L. Scott Real Estate
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