This is Beyond Bad! Where Have All the Houses Gone?
North of Montana inventory is at an all-time low of 11 active listings. The listings that are available are for the most part over-priced and therefore lingering on the market and not selling.
Three things are contributing to this phenomenon:
1.) The cost of capitol gains tax has risen by almost twice as much in 2014 and has deterred home sellers from selling their homes because of having to pay such a high tax. Home sellers have elected to now lease their homes and take advantage of 1031 exchanges.
2.) In addition to that home owners have been able to refinance their homes at extremely low interest rates making it so they prefer to hang on to their property and continue to let the asset increase in equity.
3.) Home sellers have unrealistically decided that their homes are worth 10 percent more than the current market values, making it virtually impossible to get their homes sold.
There is a huge flux of homes quietly being marketed by word of mouth between agents that work exclusively North of Montana. If you are one of these home sellers who are on the fence about what to do with your property or what the real value is in today’s market, give me a call to discuss all of your options: 310.395.0113