Depending On The Price Youre Going To Need Advice

Dated: 10/31/2019

Views: 21

Depending on the Price, You’re Going to Need Advice

Depending on the Price, You’re Going to Need Advice | MyKCM

To understand today’s complex real estate market, it is critical to have a local, trusted advisor on your side – for more reasons than you may think.

In real estate today, there are essentially three different price points in the market: the starter-home market, the middle-home market, and the premium or luxury market. Each one is unique, and depending on the city, the price point in these categories will vary. For example, a starter or lower-end home in San Francisco, California is much more expensive than almost any other part of the country. Let’s explore what you need to know about each of these tiers.

Starter-Home Market: This market varies by price, and these homes are typically purchased by first-time home buyers or investors looking to flip them for a profit. Across the country, homes in this space currently have less than 6 months of inventory for sale. That means there aren’t enough homes on the lower end of the market for the number of people who want to buy them. A low supply like this generally increases competition, drives bidding wars, and sets up an environment where homes sell above the listing price. According to data from the National Association of Realtors (NAR) on realtor.com,

“The desire for affordability continues to push down the inventory for homes listed for less than $200,000.00.”

Middle-Home Market: This segment is often thought of as the move-up market. Typically, the buyer in this market is moving up to a larger, more custom home with more features, all coming at a higher price. Across the country, this market is looking more balanced than the lower end of the market, meaning it has closer to a 6-month supply of inventory for sale. This market is more neutral, but leaning towards a seller’s market.

Premium & Luxury Home Market: This is the top end of the market with larger homes that have even more custom features and upgrades. Nationwide, this market is growing in the number of homes for sale. In the same realtor.com article, we can see that year-over-year inventory of homes in this tier has grown by 4.7%. Today, there are more homes available in the premium and luxury space, leading to more of a buyer’s market at this end.

Bottom Line

Depending on the segment of the market and the price point you’re looking at, you’re going to need the advice of a true local market expert. Let's get together to help you navigate the home-buying or selling process in your market.

Blog author image

Joanne Mills

Joanne Mills is the Broker Owner of Exit Family Realty in Lindenhurst, NY. Joanne’s has created of brokerage of highly motivated, professional associates making a powerful, positive impact on client....

Latest Blog Posts

Taking Advantage Of Homebuying Affordability In Todays Market

Taking Advantage of Homebuying Affordability in Today’s MarketEveryone is ready to buy a home at different times in their lives, and despite the health crisis, today is no exception. Understanding

Read More

Think You Should For Sale By Owner Think Again

Think You Should For Sale By Owner? Think Again [INFOGRAPHIC]Some Highlights  For Sale By Owner (FSBO) is the process of selling real estate without the representation of a real estate

Read More

Best Time To Sell

Best Time to Sell? When Competition Is at an All-Time LowIn a recent survey of home sellers by Qualtrics, 87% of respondents said they were concerned their home won’t sell because

Read More

Homebuyers Are In The Mood To Buy Today Simplifying The Market Los Compradores De Vivienda Estn Con

Los compradores de vivienda están con ánimo de comprar hoy   Según el último pronóstico trimestral de Freddie Mac, las tasas de interés hipotecarias han caído a nivelesó

Read More
Fair Housing Icon NY Fair Housing Notice