Across the nation in many communities with still-surging home prices, the biggest challenge for homebuyers is affordability and limited supplies.
And the greatest challenged for sellers is also tight inventories. Despite a seller’s market, those home to make a profit with a sale are left with the challenge of re-entering the market from the other side. This sort of “catch-22” is quite widespread.
In a March survey of more than 800 Redfin real estate agents, 65.6 percent said that low inventory was the greatest obstacle for sellers in their markets. That’s because most sellers want to buy again. And even renting is expensive in these markets.
“It’s a seller’s market, but the catch is, most sellers need to buy as well,” said Eileen Lorway, a Redfin real estate agent in the Boston area. “This is a conversation I have with many clients at our first meeting.”
Lorway says she discusses options like creating “seller to find suitable housing” contingencies for the sale contract. There’s also “purchase contingent on sale of current home” options for the buy offer, rental options, stay-with-family options and bridge loans.
“Sellers who are buying need to think outside the box a little bit,” she says. “It’s not easy, but we often do end up closing on sale and purchase on the same day.”
Redfin reported that most agents said homes were selling faster than this time last year and that competition was more intense. Among respondents, 57.2 percent had already been involved in at least one case of a home getting 10 or more offers this year. Only 1.8 percent of agents had yet to be involved in a bidding war.