Having Trouble Finding a House You Like?

If you are ready to buy but are having trouble finding a house you want to own, I can point you to the source of your problem: lack of inventory. In April 2012 there were 2.5 million homes for sale nationwide, the lowest inventory since April 2006, according to the National Assosciation of Realtors. The cause? Well, there isn't just one cause. Partial blame can be levied on the banks who are holding approximately five years worth of housing supply that is due to foreclosures.

Another contributor to the paucity of supply are sellers who want to sell but can't afford to because they owe more than their home is worth. And don't forget the professional investors, flush with cash, who are buying up distressed properties and turning them into rentals. Furthermore, new construction is at a historic low, with just 46,000 new single-family homes for sale, which is the lowest number since 1973 when the Census Bureau started keeping track. And just 70,000 single-family homes are currently under construction.

Finally, there is another source for the lack of supply that is actually government-sponsored! The federal government came up with a terrible plan to auction huge groups of government-owned homes to groups of investors to turn into rentals. This plan is bad for the taxpayers. We bailed out the banks and we, not concentrated groups of wealthy investors, deserve first crack at those homes. This is just another example of the redistribution of wealth in our country that is hurting almost everyone.

Luckily for the discouraged buyers out there, I can offer you one suggestion for managing this challenging market: team up with a very good real estate agent, like me! I know about homes that are coming on the market well before they are listed. I also know about which homes are likely to be short sales even if they are not yet listed as short sales. And popular websites like Zillow and Trulia, while helpful, can't keep up with the real time changes that occur in the MLS. By the time you see a good deal listed on Zillow, there are probably already multiple offers on it.