ABC World News recently reported that a shortage of houses on the market is slowing down what is otherwise shaping up to be the strongest spring buying season since the housing bubble burst in 2006.
The potential buyers, one-third of whom are looking to buy their first homes, are attracted by (1) mortgage rates that are at historic lows, (2) rising prices that ease fears of taking losses on their housing investments, and (3) renewed confidence in job security and the safety of their retirement accounts.
Many of the reluctant sellers are still smarting from the plunge in home values brought on by the collapse of the housing market. And while the increase in housing prices is encouraging, it is not enough to restore what many lost; some still owe more on their mortgages than their homes are worth. On the other hand, some homeowners who can afford to sell are holding back, betting that their homes will be worth even more as the market bounces back.
Experts predicting that full recovery remains three to five years away say the shortage is a highly relevant consideration.
