Stuck - House will sell, but no houses to buy!

[Anonymous]

Anyone else out there looking to buy? We want a bigger house in a better school district. It seems now is the time to buy a more expensive house with the interest rates being as low as they are. Here's the problem which I suspect many of you are experiencing. Your house will sell fairly easily given the lack of inventory, but there is NOWHERE to go because there are no houses on the market. Anyone else in this situation? People with children, would you sell and then move into a rental while you look? I'm a fairly picky buyer so I'm afraid it will take a long time to find a good house and by then, any money we've made on our house is eaten up by rent and no building of equity in the new house. ARGH.

[Anonymous]

We have friends in this situation. They are living with one set of parents while looking for a house to buy. Not much out there in the specific area/budget they want. Why would the money you've made on selling your house go towards rent? Wouldn't you just pay rent out of what the "mortgage" $$ you were paying from? Put the money you made on the sale into a saving account?

[Anonymous]

My question is, why is there so little inventory? Why no sellers?

[Anonymous]

Anonymous wrote:My question is, why is there so little inventory? Why no sellers?

Prices are too low

[Anonymous]

I imagine some people who would've otherwise been looking to upgrade are either directly or indirectly affected by the sequester and deciding to sit tight instead.

[Anonymous]

Not sure where you are looking but last wek there were 30 new listings in Bethesda alone.

[Anonymous]

Where do you want to live? What is your upper price range?

Seriously, I would consider contacting the "Make me move" people on Zillow. I know a "make me move"-er who is prepping their home for sale, and in no particular rush. When the home hits the market for real, there will be a frenzy, I'm fairly certain.

One offer already came in from someone who drove by the home and saw the "For Sale" sign outside, toured the inside and grounds, but the offer is a few $10K too short. The home is worth more, so the owner's holding firm.

Get in there now, show you're interested. But don't offer more than you can afford or that you think the home is worth (to you). Otherwise, consider renting!

[Anonymous]

Anonymous wrote:I imagine some people who would've otherwise been looking to upgrade are either directly or indirectly affected by the sequester and deciding to sit tight instead.

Sequester has nothing to do with it.

[Anonymous]

OP, since your house will sell quickly sit tight and wait for "your" house to come up for sale. We have friends doing the same thing - though I believe they will be renting theirs out.

[Anonymous]

I read an article that talked about people being stuck in their current homes. They are making the payments but can't afford to upgrade to a bigger house and they can't afford the closing costs and other transaction costs. So they have to sit tight.

[Anonymous]

This is what I thought. We now found our dream home and have our house still on the market.

[Anonymous]

We are in the same situation. It is frustrating. I am afraid to put my house on the market for fear of having no where to go. I don't want to buy a house because it is the only house available to purchase.

[Anonymous]

We are in your shoes too. We just want a little more space in N. Arlington but can't seem to find anything between starter houses and McMansions. The few houses that have popped up have gone under contract immediately, sometimes before the listing hits MRIS. We may just bite the bullet and sell our house in this market and rent for a while. I am also terrifed of being homeless, but we can make a decent profit on our house right now with very little effort and an apartment will not be much smaller square footage-wise to our current house. I'm wondering if some of this new construction in the $1.5-$1.7 range that seems to just be sitting will eventually come down in price later this summer or fall.

[Anonymous]

Nope. You sound like you have not been here very long. Everyone is looking for the same thing, in the same range.

[Anonymous]

Anonymous wrote:Anyone else out there looking to buy? We want a bigger house in a better school district. It seems now is the time to buy a more expensive house with the interest rates being as low as they are. Here's the problem which I suspect many of you are experiencing. Your house will sell fairly easily given the lack of inventory, but there is NOWHERE to go because there are no houses on the market. Anyone else in this situation? People with children, would you sell and then move into a rental while you look? I'm a fairly picky buyer so I'm afraid it will take a long time to find a good house and by then, any money we've made on our house is eaten up by rent and no building of equity in the new house. ARGH.

A few years back we sold out house and rented while we looked for our dream home. The inventory was low, and it took 2.5 years, but we found the perfect house and were in a great position to buy it (multiple bid) because we had cash in the bank from the sale. There was no pressure to reach or buy a house that was not right for us, and it was nice to take a break from mowing the lawn and fixing things around the house. Also, I invested the equity from our old home in conservative funds and made a great return over the time we rented. I am not sure what you are saying about "money made in our old house would be eaten up by rent". Wouldn't you pay rent just like you would pay your new mortgage, from normal income? If this is the case, then how could you possibly qualify for a new mortgage if you were buying? If the market for your current house is hot right now, sell it, make the maximum $ and sit tight. Too many people associate renting with failure, it is not, and quite frequently it is a great economic strategy that provides liquidity and flexibility for a future purchase.