Shrinking Inventories ....a local and national phenomenon

While we live in a unique region with many different micro-markets anyone looking to buy on the Monterey peninsula can attest to the lack of inventory. In fact, we are in some areas at 4 and 5 year lows for inventory.

Buyers are asking where where are the houses to buy ............. The WSJ published an article this week with the six reasons housing inventory keeps declining and while the last two aren't all that applicable to us on the Monterey peninsula I would say that 2 & 3 are the leading cause as to why the sellers are not listing their homes in our area:

1. Many homeowners are underwater
2. Don’t have enough equity to “trade up” (even those wanting to sell may not have enough equity)
3. Everyone wants to buy at the bottom, but few want to sell (many of our sellers don't have to sell)
4. More purchases from investors of all kinds
5. Banks have been slower at foreclosing 
6. Builders have been putting up fewer homes

Nationwide the dream lives on ....