Locally the real estate market continue to apply the brakes on properties listed at 120% of median or more. Below that threshold there is not much available in the new construction so those median and under price points still see a lot of activity. Up higher in the price ranges things are crawling with price reductions and a strong move towards a buyer's advantage. This is one of those moments in the market place where a seller of the median or lower price point home can sell high and then go beat up the seller of a more expensive home. These market opportunities to move up and save are rare coming around every few years during transition phases like we have right now.
If the Washington DC is successful in keeping the Federal Reserve on a low interest track we may see this opportunity vanish. I cannot overstate that a seller with a house fairly priced under $350k will probably get multiple offers and/or sell quickly for full price and then can take that equity and apply it towards a high priced home in the $500,000 range and find far less seller resistance to discounts. The market can do several things among them the most likely path is a continuance of the seller's market strength at the entry level and neutral to buyer's market conditions the higher up the price range you go. But the gap could close and new buyers riding low rates could put pressure back on the higher ranges tightening the top of the range back to neutral or even mild buyer's favor. Or the market could slide further and start eroding the entry level should interest rates start moving up again. In either case the incentive for an entry level homeowner to sell and move up to a larger more expensive house is very strong. Sellers in the upper end are in a less obvious situation and will have to make a call on what the market may or may not do.
Sellers of larger homes are in a tough spot right now. Builders are producing large family style two story houses that compete directly with older resales. Those looking to downsize are in a tough spot as buyers are in control on the upper end large house market and sellers rule the bottom. Pricing in the upper end does not appear to be contracting, but rather just riding the brakes with nominal appreciation and that has led buyers to lose that sense of urgency.
Buyers at the entry level however must remain vigilant because there is far less inventory under $400k than there is buyers and that means a well priced small ranch house in the low $300's is gone before the ink is dry on the listing forms.
The real estate market is rarely in sync at all levels and neighborhoods, so staying in contact with your preferred professional Realtor® is always wise advice.
Post a Comment