I had a listing appointment on Monday and preparing the CMA for the sellers was eye opening. The same thing happened when I was showing homes this past weekend to an out of state buyer. There are very few homes listed currently. Buyers are losing out on homes they like if they hesitate to act. Prices are not yet rising, but they will simply because of supply and demand. Pre-sale homes to be built are selling quickly since there are no already built options.
USA Today had an article about the scarcity of home sellers in today's edition. Nationwide the supply of existing homes for sale has fallen for seven straight months. The absorption rate, months to absorb the homes currently on the market, has fallen dramatically.
I receive weekly, the current foreclosure report. There are very few additions to that any more. I tell my sellers and buyers that those who had to sell their homes have either sold or lost their home already. Many sellers do not have equity so are sitting tight until the prices start to rise.
So, while the real estate market has picked up a great deal, this presents other challenges. If I have a buyer, it is going to be darn hard to find them what they want, there will be compromises or they will not buy. If I have a seller, it is a challenge to get them the highest price possible while not pricing too high and missing out on a buyer.