Survey: Optimism over Prices Has Sellers Holding Off

""Redfin's"":http://www.redfin.com/ latest survey of homeowners presented a mixed bag for future inventory, the company reported.

[IMAGE]

According to Redfin's latest Real-Time Seller Survey, 81 percent of sellers believe home prices will rise in their area over the next year, up from 75 percent in the fourth quarter of 2012. While the increase in seller confidence should translate to increased inventory, the results have yet to be seen.

""Responses to Redfin's Real-Time Seller Survey present a classic good news/bad news scenario. The good news is that homeowner confidence continues to rise--22 percent of sellers believe now is a good time to sell, up from just 15 percent three months ago--indicating a potential easing of tight inventory in the coming months,"" Redfin analyst Tim Ellis wrote in a ""blog"":http://blog.redfin.com/blog/2013/01/81_of_home_sellers_believe_home_prices_will_continue_to_rise_missing_out_on_future_price_gains_surpasses_the_economy_as_top_concern.html for the company.

""The bad news is that many would-be sellers continue to opt for renting out their homes rather than selling, so any increases in listings are likely to be modest. Even when (or if) more inventory comes, it's likely to hit later this year [COLUMN_BREAK]

than most years, as many sellers have shifted their timelines a few months into the future,"" he continued.

According to the survey, 49 percent of respondents indicated they were planning to sell, up from 45 percent in last quarter's survey. However, the percentage of respondents who indicated they were selling ""right now"" fell by nearly half to 16 percent.

Meanwhile, the number of respondents saying now is a good time to buy fell 4 percentage points to 54 percent.

For the first time, Redfin asked homeowners not planning to sell to share why. While 68 percent said they were simply happy in their homes, most the remainder indicated they would be willing to sell under different conditions--for example, a combined 12 percent said they were waiting for prices to improve further so they could maximize their gains.

When asked about their major concerns with selling, 34 percent answered ""home prices will rise in my area after I sell,"" another indicator that that high optimism for prices is making potential sellers reluctant at the moment. An additional 34 percent said they were ""worried about general economic conditions,"" which was previously the most popular answer.

While sellers may currently be reluctant about diving into the market, Ellis expressed confidence that they'll dip their toes in soon enough.

""Almost every sign in this month's survey points toward more sellers being willing and interested in putting their homes on the market,"" he wrote. ""While that sentiment has not yet translated into an increased number of new listings, there is still hope that the tide will turn over the next few months, easing the frustrations of buyers caused by last year's tight inventory.""