Why are so many houses for sale. WHERE are all of the sellers going?

Question

Math 101 would tell me that if one were to sell a house, they would move to a house, so it would all even out in the end. However, everywhere I look, and everything I read is about the abundance of houses on the market. WHERE ARE THEY ALL GOING? HELP PLEASE

Answer 1

Some are renting (no change in overall housing) but many are moving in with people or even living in motels/ their cars/ anywhere.  Also, many people, especially immigrants, are having such a hard time that they are leaving the country, and finally due to overbuilding many houses were built that were never even lived in.  All combined there are alot more houses than residents in many areas, but it will all equal out eventually - may take a few long hard years though.

Answer 2

many are renting and trying to ride out the "storm".  also remember that many of those homes for sale are not selling.  the supply is part of the problem and a big part of what is driving down prices.

Answer 3

There are a lot of reasons.  First, there was rampant speculation and many of the people buying houses were investors.  They bought houses just for the purpose of re-selling them and not to live in them.

Second, it was easier to qualify for a mortgage.  A lot of borrowers can no longer afford their homes, and they will lose these to foreclosure.  They will be renters now, or may have to move in with friends or relatives.

Third, a lot of current renters are nervous about buying in this market.  So, they are sitting on the sidelines waiting for things to get better. Or, they can't qualify for a mortgage because now you have to have a down payment and a higher credit score than before.  So they will have to wait to buy a house.

Answer 4

opinion-they are scared off by the current market (according to the media) and they red tape.  buying a house shouldn't be so a drama