Low Housing Inventory Blues: Why Sellers Aren’t Selling

Low housing inventory continues to plague would-be buyers, and keeping property values up at all-time highs.  Even though the pool of buyers has decreased significantly due to high interest rates eating away at affordability, those buyers are still competing for homes, especially in low and median price ranges.

According to the Orlando Regional REALTOR® Association’s most recent “State of the Market” report for Central Florida, housing inventory was down almost 10% in August 2023 compared to August of last year and almost 7% percent compared to July 2023. Bottom line, there still aren’t enough houses available, particularly at more affordable price points.

Seller’s are weighing the pros and cons of making a move right now, and many are deciding to “wait and see”. Here are some reasons why:

Can’t find a replacement home – Selling a home means entering the buying market and facing the challenges that buyers are experiencing right now. Low housing inventory now becomes a problem for a would-be seller.

They currently have a low-interest rate – Sellers who bought or re-financed at a low interest rate aren’t willing to give that up, and who can blame them? Especially when we consider that interest rates aren’t the only things that went up.

Higher property taxes – Some sellers fear that moving would expose them to much higher property taxes. Florida’s portability program can help in this department.

Insurance increases – Moving to a larger home or a nicer community could mean higher insurance than what they are currently paying. The truth is, insurance can increase just because. This IS Florida we’re talking about.

The real estate market is ever-changing, but rest assured that real estate agents, mortgage professionals and entrepreneurs are working hard to make the market work for you.

Inman (09/20/23) Medford, Carl;

Orlando Regional Realtor® Association State of the Market Report August 2023