Because of tight housing market, some sellers wary of listing

Kenneth R. Harney

Call them the frustrated wannabe sellers — eager to list their homes for sale, but feeling locked out of their markets by severe inventory shortages and rising prices that are occurring in many parts of the country. They want to move. They think that they could sell relatively quickly. But they can’t find affordable, desirable replacements for their current homes because there are fewer to choose from.

So they don’t list, thereby contributing to a pernicious cycle that worsens the inventory squeeze.

According to the National Association of Realtors’ latest data, total listings of homes for sale are down by 8.1 percent during the past year alone, and they have fallen for 33 consecutive months.

Meanwhile, prices are up in major segments — median starter homes by 9.6 percent for the year, trade-up homes by a median 7.5 percent.

The “where will we go?” factor is significant. As part of a national survey of homeowners last October, realty firm Redfin found that among the top reasons given by a sample of owners who might like to sell but are not listing were:

• “I’m worried I won’t be able to find a home to buy.”

• “I can’t find another house I like.”

• Fears about pricing and affordability.

Boston-area realty broker Anthony Lamacchia calls this “a national epidemic” that might be lessened if sellers and buyers would consider some win-win compromises. Sellers should be open to buyers who need to sell their current homes in order to come up with the cash to close on a new home.

For their part, buyers need to be open to delayed move-outs by sellers who haven’t found a new home. Buyers can offer “rentback” arrangements where sellers can stay in the house awhile after closing, paying monthly rent to the new buyers, and giving themselves time to find a new place.