Over the weekend, there was a radio talk show that was discussing why homes weren't selling. The host said since interest rates are so low and prices are so good, why aren't they selling? They discussed a lot of things like people are afraid they might lose their jobs or they are afraid of the economy and what might happen. That does impact things, no doubt, but to me the main issue is that supply and demand is way out of whack. A balanced market is when there is five to six months of inventory available. That means at the current rate of sales, it will take five to six months to deplete the current inventory. In July in Henry County, Georgia, months of inventory was 13.65 for resale homes priced from $100,000 to $5,000,000. I would take over 13 months to deplete the July inventory of homes for sale. The old, basic law of supply and demand proves true again. There is too much inventory for the available demand. This keeps prices depressed, and it means that many homes remain unsold.
If you are selling your home, you must be aggressive on price. You will be able to purchase another home at depressed prices just as you must sell at depressed prices.
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