Shortage of Homes on the Market... Thinking Outside the Box to Get the Market Moving!

Shortage of Homes on the Market... Thinking outside the box to solve it!

The number of homes on the Market is at a LOW!!! To date, 2016 has given us an average of a 2.1 month supply of homes on the market. In my 11 years of Real Estate, I have never seen numbers this low! EVER! Buyers are frustrated and feel like they are 'stuck'... 

Why is there a shortage of homes for sale??? Why are the number of homes on the market at all time lows???  What are some possible reasons sellers are staying put?

1) Home Owners are happy with their current home. Their home 'fits' their current lifestyle

2) Home Owners currently have a GREAT Rate (3-4%)... although rates are still in this realm, so maybe, maybe not...

3) Home Owners are still a bit underwater on their mortgage and don't have the ability to sell. The market has appreciated A LOT in the last few years. Please contact me for a FREE consultation to determine the current market value of your home.

4) Home Owners can't find a home on the market that they want to move into, due to the lack of supply (This is the one that I am hearing the most when I meet with potential sellers)

WHAT can we do about it???

Forbes.com suggest some 'outside the box' ideas (even though they call them, just 'thinking ideas'). 

1) Approach the law makers and have them change the law for short sale situation. Forbes.com is suggesting that these sellers who have never missed a payment (responsible homeowners) be able to apply for a new mortgage right away instead of having to wait 3 years.

2) Reduce the Mortgage Insurance on home loans to make housing more affordable.

3) Coach sellers to consider a 'contingent' offer on their home that will allow the buyer of their home some time to sell theirs... This will give sellers some peace of mind in knowing that there will be a home on the market for them and increase the number of homes to list for sale.

The last idea is one that resonates with me as I have had this same conversation with MANY potential sellers lately!

To read the full article by Forbes.com, click here :)