More homeowners interested in selling, but waiting for more inventory

It’s a chicken or the egg situation.

More homeowners are interested in selling, but are hesitant to list their homes, they say thanks to lack of inventory on the market.

Nearly 80 percent of homeowners believe now is a good time to sell, with two-thirds considering selling their home “in the near future,” an increase of 8 percent from the previous quarter, according to ValueInsured’s latest quarterly Modern Homebuyer Survey.

However, they are hesitating to list their homes. Seventy-two percent said they are concerned with timing in the real estate market, while 63 percent reported that now may be a good time to sell, but they are waiting because it is not the best time to buy, thanks to high prices, and relatedly, 61 percent said they plan to wait until prices are better to move. More than one-quarter of respondents said they don’t want to pay the extra fees (such as closing costs, brokers fees) that go along with selling their home, while 18 percent reported they don’t want to give up their current low mortgage payment, according to the survey.

“Homeowners in many cases are eager to sell but don’t want to become buyers,” said Joe Melendez, CEO of ValueInsured. “These homeowners have experienced a lot of home value volatility and see more uncertainties looming – tax reform, for example. By hesitating, these homeowners are actually controlling the market on both sides. Reassuring these individuals is the key to unlocking inventory.”

With inventory low, and prices high, some consumers are taking risks. Remind your clients who are looking for a property that these top five risks are usually not worth it: no inspection, offering without seeing the home, co-buying with strangers, cashing out from retirement savings and tiny homes, the survey reported.