It looks like July will end up like the last few months with twice the number of new listings as pending sales and another record month in number of price changes.
I participate in discusssion boards with Realtors across the country. The increased number of new listings is not unique to California. There has been an interesting discussion on why there is such an increase. Following are 4 types of Sellers that may be contributing to the large number of homes being put on the market:
1) Serious Sellers – These are motivated homeowners that want to sell their home and will adjust their price based on what the market is telling them.
2) Speculative Sellers – These homeowners are testing the market and a price. They are hoping they can still get top dollar for their home but aren’t interested in adjusting their price if they don’t.
3) Loan problems – These are homeowners that may have purchased their home using “creative financing” only to find their monthly payment skyrocketing as the interest rates have increased over the past year.
4) Investors – People looking to cash out of their current investment.