Lack of Sellers
Fewer homeowners are opting to sell despite homes appreciating to record levels.
This is the time of year when Southern Californians flock to the beach to escape the heat and enjoy the cool surf of the Pacific Ocean. After a long day of jumping in and out of the water, chasing the waves, building sandcastles, and basking in the warmth of the sun, many experienced beach goers realize that they forgot to reapply sunscreen. Upon returning home and gazing in the mirror, they quickly confirm that they have a lobster red sunburn from head to toe. Nearly everybody has experienced the pain of this sunburn. The pain is a helpful reminder to never forget to reapply sunscreen again.
Similarly, homeowners across the nation watched the housing market take a brutal pounding during the Great Recession as their equity vanished in a blink. Many lost their homes to foreclosures or short sales. Everybody was either personally burned or they knew somebody who experienced the painful sting of the downturn. As a result, a new trend emerged to avoid that lobster red burn with staying power: homeowners remain in their homes for a lot longer. They are content in keeping their home. There are fewer homeowners who opt to sell every year, and even with record home values, the trend continues.
Excerpt taken from an article by Steven Thomas.