The tell-tale sign of a stagnating real estate market? When homes for sale start lingering – and that’s exactly what real estate brokers and other industry watchers say they’re seeing now.
The National Association of Realtors does not maintain national time-on-market figures. But inventory – the number of homes for sale – spiked 37 percent for the 12 months through April 30, the most recent data available.
All that supply means homes are sitting around longer and that sellers are asking more than buyers are willing to pay — an indication that prices may have to come down.
“Sellers are in denial, and there is a rising disconnect with the buyers,” said Jonathan Miller, a real estate appraiser in New York. “Until sellers get the message, you’ll see a drop in the number of transactions.”
All this is evidence that the real estate boom may have run its course in many hot markets. At the very least, sellers will have to set their prices very carefully if they want to move their properties quickly and avoid long months of having their houses spending time-on-market.
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