Reports from us and from media outlets here and around the country trumpet the fact that prices are up and inventory is down. All around Chicago in many markets the advantage is with sellers. So why is inventory stagnant or declining?
Chicago Agent Magazine has some reasons that are worth considering:
• New construction imbalance: new housing is being built at a level not seen in several years but it's largely targeting a high-income bracket and failing to relieve the pressure on the whole market.
• Negative equity: as many as a quarter of homeowners are still either in negative equity territory or functionally so (having insufficient equity to retire their mortgage and pay taxes and commissions). That keeps a lot of potential sellers out of the market.
• Low numbers of quality inventory: there are still many people that could sell, but what would they buy? Many sellers are sitting out the market because they don't think they'll find a property to purchase.
• Rate lock-in: many homeowners locked in historically low mortgage interest rates and may not be willing to pay a higher rate.
For more details, head over to Chicago Agent Magazine here.