Crazy Market under $400k

 Buyers trying to find a house under $400k are going to meet a lot of other buyers doing the same thing. Down around $300k it is a zoo with multiple offers over asking the norm rather than the exception. With the Clark County Median home price right near $400k that is the new "sub-median" line.

Although COVID 19 has claimed many jobs the real estate market continues to be hot. Lenders are looking closely at buyers but when things align the loan rates are very low and that mean more buyers can afford a house despite the rising prices. This puts pressure on that entry level market.

But for the first time in a fair while, new homes are available in the sub-median price range. A brand new home for under $400k? Yes, not a lot of options, but they are out there. Before you run off to that shiny new subdivision be mindful that new home sin the sub median price range will be attached housing or at best a very small house on a tiny lot. The resale market can still deliver a small house on a big lot, and for many who seek some stretching room, that is the perfect ticket.

Did you ever think you'd see the day that a 800 SF 'Kaiser Cottage' would be fetching $300k? Well that day is here some of then are and they are getting snatched right up at those lofty prices. 2.5% interest rates on 30 year fixed loans will make a market out of thin air!

Dads, Grads, and Houses

June is often a big jumping in point in real estate. Typically the market sees a bit of an uptick in listing activity in late April and May which translates into buyer activity in late May and June. Well, hear we are on June 8th, sun is setting at 9 o'clock and things feel about the same actually. Inventory remains very tight under $400k, softens up a bit up to $600k, and up above that things turn in favor of buyers rather quickly!

This is HOT (less than 2 months inventory

In our local market, a seller with a home to sell under $400k that plans to move up to $600k; NOW is the time. You will get top dollar on your current house and be able to reasonably negotiate on the purchase of the new one. One of the recurring themes in my 2010 book, 'Don't Panic' was to buy low and sell high and sellers under $400,000 can sell high and above $600,000 they can buy low, well sort of low ;)

This is NOT more than 12 months inventory

This is a great move up opportunity that may evaporate if rates continue the upward march. rate pressure can soften the entry level market so this window of opportunity to sell in a seller's market and buy in a buyer's market at the same time may not last long.

You didn't see that coming... did you?