Why exactly are we experiencing this “extreme seller” market? Here are some of the conditions contributing to what we’re seeing out there.
Low equity. Property owners with low equity are just one of the many reasons inventory is low. Even with a 10-20% surge in valuations, many owners are still in a relatively low equity position, so staying put may feel more comfortable financially. And low equity means less funds available at closing to buy up to a larger property.
Low mortgage rates. Historically low rates are making the market, as overheated as it is, attractive to lots of buyers.
Lack of new construction. There’s not much room to build in Brighton, Brookline and Boston generally. What new construction does come to market is instantly snapped up unless it’s ridiculously over priced.
Lingering perceptions. Some sellers are still in a down market mentality. News of a super hot market took many months to percolate through the population at large; now it might be common knowledge, but property owners who are out of state or just tuned out to the real estate market may still be unaware of how dramatically their property has appreciated in value.