|975 SF, 3 bed 1 bath, $199k|
The $200,000 dollar price point is beginning to vanish in this market. Sure there are fixers and super tiny homes as well as condos and townhouses, but the single family detached dream is getting tight at $200k. I have a young man interested in buying his first home. He is looking to keep it around $200k and wants to use the USDA lending program. This loan program is designed to serve rural areas but there are a few here in Clark County.
|1506 SF, 3 bed 1 bath $199k|
This entry level housing market is almost always in demand. During the recent hard recession (2009-2012) I sold a great deal of homes in the entry level price range. The tough market conditions created a whole new class of buyers in a much more modest income bracket. Back then, I wrote articles about two minimum wage earners qualifying to buy a real house! These buyers are now sitting pretty with a nice chunk of equity in the homes they paid $125-150k for now valued at $200-250k.
The entry level buyers are the most vulnerable during an upswing in values. They can easily be priced out of the market by either rising home prices or rising interest rates. The whole new class of buyers I mentioned above are already priced out of this housing market. The window has closed locally for two minimum wage earners to buy a detached single family. Buyers in the higher prices ranges may not get priced out, but they can get priced down, meaning they may have to downsize the dream if they sit on the fence too long.
Sellers are in a prime zone right. Selling in the middle of an upswing can be good for the move up housing market. Sellers can let that entry level home go, use that equity to buy up to the larger home and still enjoy some market appreciation. Waiting too long, like people did in 2007-08 can result in being "stuck" for a few years when the market dips down. In my book 'Don't Panic', the whole theme is to buy low and sell high. We are running slim on the buy low opportunities so don't sit on that entry level house much longer. Sell it and grab your new house while their is still strong upside potential on the value.