There has been a lot of chatter about individuals and banks (who own foreclosed houses) holding back and waiting for a better time to sell. With the glut of houses on the market, sellers have been hoping against hope that the market will provide a window for selling. Now that spring is coming, many see this as the time to try again so keep your eyes on the housing numbers.
A combination of lower interest rates and government efforts to free up credit could result in a flood of homes being put up for sale in the coming weeks.
"We're seeing a lot of activity with (sellers) starting to kick tires again," says Alan Rosenbaum, president of GuardHill Financial, a mortgage advisory firm, in New York. "We try to show them the affordability factor. Rather than waiting for rock bottom, the intelligent ones are moving into the marketplace and seeing what's available."
While great for potential buyers, the added glut of housing could push prices even lower, further depressing the market. At the same time, it could actually jump-start housing by bringing more home-buyers into the market.
With stimulating the real estate market a principal goal of Washington policymakers, the temptation for buyers and sellers to jump into the market could be irresistible, especially if interest rates stay low.
"The first signs of life you see in home sales you're going to see met with a lot more inventory," says Michael Pento, chief economist with Delta Global Advisors. "The last thing you want to do as to add more inventory to an already-oversaturated market."
