Right now our market is still very hot in the under $400,000 price range. There is very little available in this range and what comes to market is quickly swallowed by the throngs of first time home buyers trying to get a piece of the action.
Things are by no means as crazy as they were a few years ago, but the market remains very healthy and rather robust in the entry level. Things at the top look a bit murkier. Many sellers have listed property, some at puffed up prices and there simply is not enough high end buyers to grab them. I am seeing price reductions on many listings in the $500,000 and up range.
Our market is transitioning into neutral conditions and this does tend to start at the top. But those who bought a three bed two bath ranch home back before 2015 could be in a very strong position to get top dollar for the current house and then beat up a seller on that move-up house at $500,000. Perhaps a buyer spent $250,000 in 2014 on a 1500 foot ranch house and now can sell it for $330,000. Once the search for a $500,000 replacement home starts it may not take long to see the pricing is soft up there, very soft in some cases.
New construction is driving resale prices down in the $450k-$550k range. A nice step up home that could command $600,000 a year ago has likely softened up to $500,000. Prices are actually falling in the tradition sense of the median values. That has continued to inch up, it is just a supply and demand issue that has created this move-up opportunity. There is a still much more demand than supply at the bottom range of price, but the middle and top have seen a spike in inventory that is giving buyers an opportunity to be picky and even beat up sellers a little on price.
Locally we are still selling large numbers of houses and things are strong, but there is always a little opportunity in the winds, and people sitting on a mortgage more than five years old, in a small house could take advantage of this mixed market.