Will 2012 be a Seller's Market?

For the past few years, we've been working in a buyer's market. That is, there were way more listings than buyers out there. That's been tough for a listing agent like me.

But it seems we may be looking at a big change going into next year. Here are a couple factors that point to Cleveland's east side becoming a seller's market:

Fewer foreclosures - Foreclosures should slow down as Freddie Mac and Fannie Mae change their rules and more financially distressed homeowners are able to hold on to their homes. I haven't seen foreclosures being a huge factor in the Chagrin Valley, but they are out there.

Fewer Housing Starts - Builders have been leery of building spec houses and starting new developments. But there is pent up demand for new construction. We estimate that 15% of buyers want a brand new house, and there's definitely a shortage in our area.

Interest Rates - Buyers are going to come to realize that our amazing low interest rates have no where to go but up. Buyers who have been on the fence waiting for rates to go lower may finally buy. That means more buyers out there.

Inventory - Our inventory of houses for sale is so low! In almost every community, the number of listings is down.

It all comes back to your high school economics class....good old supply and demand!