Currently in the US housing market things are a little bit tough, there are 1,000s of homes for sale area of every city and in all the suburbs. This means with such huge supply it is a buyer’s market and distressed sales and foreclosures drive average home prices down even further. If that is not enough lenders have tightened up credit requirements for homebuyers; something they should have done at the top of the market, not here at the bottom.
Needless to say, there are lots of homes for sale and few buyers. Many home sellers who are upside down in equity end up doing Short Sales, selling their Homes for sale in Albemarle County VA for less than is owed and promising to pay the bank on a note later. The banks would rather do this so they do not have to foreclose and lose even more, as they maybe unable to collect on the balance from the former homeowner.
Then of course, the real estate agent and their broker also have to be paid, this is yet another fee out of the deal, and each incremental cost, makes homes harder to sell, as they cannot meet the financial needs of buyers, sellers and lenders. When this happens the home remains on the market adding to the excess inventory. A vicious circle of housing crisis making some analysts wonder; will it ever end?
Recently, one housing Think Tank participant proposed that all real estate agents depart the scene for a while, allow paper work and regulations to relax, so folks could sell their homes without the agents, eliminating another 5-6% of the costs. This would allow more homes to sell and help close the gap, as that 5-6% could mean that a whole chunk of homes would be sold, and would be taken off the market and taking up the slack. Something to think on and an interesting conversation either way.