We previouslyreportedhow a shortage of inventory in the starter and trade-up home markets is driving prices up and causing bidding wars, creating a true seller’s market. At the same time, in the premium home market, an over-abundance of inventory has started to see prices come down and put buyers in the driver’s seat, creating the beginning of a buyer’s market.
Last week, theNational Association of Realtorsreleased theirExisting Home Sales Reportwhich shed some additional light on the impact of inventory levels on sales in each price range.
The chart below shows the year-over-year difference in sales at each price range.
The under $100K range has shown declines in recent years due to the shortage of distressed homes available for sale (just 5% of sales this past month, compared to 35% in January 2012). Sales in the next two price ranges are no doubt being hindered by low inventory as buyers compete for the same home.
NAR’sChief Economist,Lawrence Yun, explained:
“Those able to close on a home last month are probably feeling both happy and relieved. Listings in the affordable price range are scarce, homes are coming off the market at an extremely fast pace and the prevalence of multiple offers in some markets are pushing prices higher.”
The biggest surprise?This is the first time in years where the $1M and up price range had the highest jump in sales when compared to last year and to all other price ranges (29.1%)! The two price ranges right underneath the $1M range were a close second and third. As the price went up, so did the sales!
With additional inventory available in the higher price ranges, and the economy improving, many luxury buyers are finding it easier to find their dream homes. Yun commented,
“The job market in most of the country is healthy and the recent downward trend in mortgage rates continues to keep buyer interest at a robust level.”
If you are one of the many homeowners who is looking to sell your starter or trade up home and move up to a luxury home, now is the time!
Author:Connie White Phone: 843-532-3356 Dated: July 20th 2017 Views: 226 About Connie: My personal venture into real estate was driven by the desire to provide an enjoyable environme...
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"5 stars KevinThorp 09/01/2013 I am very happy with my Realtor specifically … Connie White. We had been trying to sell some land for a number of years, starting with another realty company, with disappointing results. The agent was very motivated and attentive... until I signed the contract. Then I rarely heard from from him, and when I did, it was mostly excuses. So we tried selling it ourselves, also without luck. We got plenty of calls, but they were either unqualified to buy or made extremely low offers. Finally I hired Connie White. What a refreshing difference! She is very energetic and doesn't know the meaning of the word no. Connie went after leads like a laser-guided cruise missile and always kept us informed by email, phone calls and in-person meetings. In this tough market we expected to take a big hit on our asking price, but were VERY pleased at the final sale price. My family and I highly recommend Connie! "