Where have all the Traditional Sellers gone? While foreclosures are down 60% and short sales are down 54%, Traditional Seller homes for sale are down an eye-popping 70% from their peak in 2007!
Seller activity has been much lower these last 5 years due to the decline in home prices but in 2012 we saw an increase in prices and saw 5% more Traditional Seller listings enter the market as well. Even with the increase in seller activity this year we still lost inventory because buyers have come out in droves to take advantage of the lower interest rates, turned off by rising rents, and are also feeling reassured that the economy is starting to improve.
All signs point to continued improvement in the housing market for 2013 = I will have some specific forecasts posted here in the near future.