Sellers Can’t Move… Period!

We have been noticing a trend happening lately with the sellers that we have been dealing with.  The number of listing presentations that we have done recently is very high… Many sellers, those who have purchased in the last 2-3 years, are having a difficult time versus those who purchased 3-4+ years back.

Of the sellers that have purchased 2-3 years back, some of them are wanting to upgrade their home, and some are even wanting do downsize…  But here’s the thing… Majority of them can’t do either!  With the market swinging the way it has over the last year, prices have gone back to the values of early 2007.  The sellers don’t have enough equity in their homes to make either move.  It’s hard to see the ones who are wanting to downsize, as their payments are a bit high for them currently, but they simply can’t.  Those who are venturing to sell, they are selling $30,000 – $50,000 below what they paid for the home, and in some cases even more.

What will this mean?  I think we will see condo prices and sales increase over the coming months, as their are many and I mean MANY new buyers now buying.  But the upper end single family homes, we will probably not see as great of an increase for some of the reasons above…

What are your thoughts?