These are examples of one type of ‘stealth inventory’. Like the other forms (such as boomer retirement plan RE), this is inventory that will be listed with urgency when price falls become well and truly established. -vreaa
Yalie at vancouvercondo.info 27 Aug 2010 7:05pm - “I personally know of several people who tried to sell recently but didn’t get the price they needed. They would have needed to cough up a big check if they sold at the price that current buyers were willing to pay, and they just don’t have the money to make up the difference. Some of them bought a couple of years ago at the previous peak, and others are loaded up on home equity debt. I think that unlike 2 years ago, there are far more people who simply *can’t* sell below a certain price because they’re underwater.”
Teddybear adds, 28 Aug 2010 9:35am – “My brother is in that boat. Last summer/fall [2009], during so called “bidding wars” (what a nonsense), they could not get the price to break out even after the realtor’s fees, and they took the condo off the market.”
It’s amazing how quickly commissions eat into the return of lower priced properties. When Realtors want 7% on the first $100K and 2% after that, on a $300K property that’s 3.5% right there.