So many buyers are sitting on a house they don't want to list because they haven't found a replacement house. Their logic tends to be sound. They don't want to sell their home and then not have a place to go. The worry is that this crazy seller's market is making it hard to get a house. Multiple offers and a tight inventory is leading many potential sellers to sit on the fence.
This is a seller's market and sellers are not that comfortable taking offers from buyers with a house to sell. This is actually kind of silly when you think about it, the house they are sitting on will probably sell in jiffy.
Buyers should be aware that the same difficulties they are experiencing in finding a house will be experienced by the buyers looking at their house. Sellers can make unusual requests in this kind of market. For example the seller could sell the home with a long closing period so as to give them time to acquire their next home. Buyers are more willing to accept these kinds arrangements because they too are getting desperate to secure a house.
The bottom line is that a buyer with no sale contingency is in a stronger position with the seller and those that offer with a sale contingency will either have to offer more than the other buyer or lose the deal.
Personally, I prefer a real estate market with a little bit more inventory. This one house for every three buyers baloney tends to wear thin on the market and if it goes on too long, buyers will simply give up.
This is a great time to sell a house, not as good for buyers, but great for sellers. Those considering listing their home have a nice window this summer to get sold for top dollar before economic conditions in the lending world slow things a little bit. No one knows for sure when rates will rise, but the Fed Chair, Janet Yellen has been indicating the time is ripe for some increases int he Fed rate.
If you are going to tread this market with a sale contingent offer plan, be sure to make the rest of your offer as tasty as possible for the seller. Remember most listed properties these days are seeing no shortage of willing and able buyers. Sellers are in the driver's seat.