Owners Hold Off On Sales Of Homes
Unable to Move Up In a Tight Market, Many Just Stay Put
By Sandra Fleishman
Washington Post Staff Writer
Monday, May 2, 2005; A01

The super-charged local real estate market that has sent home prices soaring is increasingly leaving prospective sellers hesitant to put their homes on the market, believing they cannot find an affordable move-up house, according to real estate agents.

That, in turn, is translating to a tighter supply of homes for sale.

"This is a fear of being homeless and not finding anything, which is a well-founded fear," said Ron Sitrin, a Long & Foster Real Estate Inc. agent in the District. "But the more a potential move-up buyer is afraid to put his home on the market, the more difficulty people will have finding homes. It's a giant Catch-22."

Traditionally, home ownership has been about trading up. People bought a starter house and lived there for a while. Then, as their families grew or their incomes rose, they moved to a bigger house or a tonier neighborhood. But the hot local real estate market is disrupting that pattern.

For example, Dan and Pamela Kelly live in a small but nice two-story house in a woodsy neighborhood in Silver Spring. They have no doubt they could sell it in a heartbeat, and for a handsome profit.

But the couple say they are afraid to put the property up for sale, even though they would love to move to a bigger place. "While I could sell it, I don't think there's anything I could afford to buy," said Dan Kelly, a restaurant employee recruiter.

Denise Champion, an agent with Long & Foster's Chevy Chase office, agrees. "Probably that describes half the sellers out there, that they're afraid to sell," she said.