It is a remarkable time in the Silicon Valley and Peninsula Real Estate markets as desperate Home Buyers are seeking to buy when the inventory of homes for sale are at their lowest in history! I have deemed this the UN-inventory! Being that home prices are now at all time record prices, what is holding back home owners and potential home seller’s from putting their homes on the market?
The reasons I have come across are varied but the top ones are that they don’t know where to go, the capital gain tax rate has increased significantly and they will owe more tax and that if they sell and buy another property they will lose their Proposition 13 property tax base. It also seems that home owners prefer to stay in their homes as they get older and have access to in home care for the long term as well. To make this even more difficult, there are long waiting lists for senior housing choices making it difficult for them to make a move.
Buyers are now lined up bidding on almost any reasonable home that is listed and bidding the home prices up substantially! Usually the spring brings on the most number of homes for sale, but this market is far from usual and there is no way to predict accurately how many homes will be put on the market for sale as 2014 begins. Regardless, until more inventory comes on the market, there will continue to be desperate home buyers!