Will the hot housing market continue?
Although we addressed this issue last month, the red-hot housing market and how long will it continue is a question we are asked on a daily basis.
Real estate professionals throughout the industry point to the supply/demand issue that will continue to set housing records well into 2022. The supply of available homes for sale is lower than in the 1990s.
We know people who would like to sell their homes, but they don't have anything to move into so they've decided to stay in their current homes longer, explained Broker Marty Pozgay. "We believe we will continue to see low inventory even within retirement communities where there is a natural attrition rate due to deaths or owners moving to other states to be closer to family."
With such a hot market, will there be an increase in For Sale By Owner (FSBO) homes? Again, the industry says no as the statistics show that the number of people who sell their own homes has declined significantly over the past decade. In 2020, only 8 percent of homes sold in the U.S. was a FSBO sale, according to the National Association of Realtors who tracks this number.
"I believe most people realize that when selling real property there's too much room for error, resulting in legal liability," says Pozgay. A good example is Orange Harbor, which is a cooperative under Chapter 719, Florida Statutes. There are legal disclosures that are required to be given to a new buyer in any cooperative. Is the owner selling the home themselves providing these disclosures? Highly unlikely. In addition, most people who sell their own home do not obtain title insurance, so the buyer doesn't know whether they are obtaining clear title to the home. A real estate transaction should not be a "buyer beware" decision or one that results in litigation against an unknowing seller.