Depending on the Price, You're Going to Need Advice

Dated: 10/22/2019

Views: 83

Depending on the Price, You’re Going to Need Advice

Depending on the Price, You’re Going to Need Advice | MyKCM

To understand today’s complex real estate market, it is critical to have a local, trusted advisor on your side – for more reasons than you may think.

In real estate today, there are essentially three different price points in the market: the starter-home market, the middle-home market, and the premium or luxury market. Each one is unique, and depending on the city, the price point in these categories will vary. For example, a starter or lower-end home in San Francisco, California is much more expensive than almost any other part of the country. Let’s explore what you need to know about each of these tiers.

Starter-Home Market: This market varies by price, and these homes are typically purchased by first-time home buyers or investors looking to flip them for a profit. Across the country, homes in this space currently have less than 6 months of inventory for sale. That means there aren’t enough homes on the lower end of the market for the number of people who want to buy them. A low supply like this generally increases competition, drives bidding wars, and sets up an environment where homes sell above the listing price. According to data from the National Association of Realtors (NAR) on realtor.com,

“The desire for affordability continues to push down the inventory for homes listed for less than $200,000.00.”

Middle-Home Market: This segment is often thought of as the move-up market. Typically, the buyer in this market is moving up to a larger, more custom home with more features, all coming at a higher price. Across the country, this market is looking more balanced than the lower end of the market, meaning it has closer to a 6-month supply of inventory for sale. This market is more neutral, but leaning towards a seller’s market.

Premium & Luxury Home Market: This is the top end of the market with larger homes that have even more custom features and upgrades. Nationwide, this market is growing in the number of homes for sale. In the same realtor.com article, we can see that year-over-year inventory of homes in this tier has grown by 4.7%. Today, there are more homes available in the premium and luxury space, leading to more of a buyer’s market at this end.

Bottom Line

Depending on the segment of the market and the price point you’re looking at, you’re going to need the advice of a true local market expert. Let's get together to help you navigate the home-buying or selling process in your market.

Blog author image

Eric S. Stegall

Thank you for visiting my website. I've been helping families find their place at the the lake for almost two decades. I love introducing new customers and clients to this beautiful area, I get to cal....

Latest Blog Posts

The Lake Pro Team - Lake Keowee Market Update - July 2020

The waterfront home market on Lake Keowee is on fire. We currently have 3 months of waterfront home inventory available for sale. That is in comparison to last year when we had 9 months of.

Read More

Why This Is More Like 9-11 Than 2008

The current situation with the coronavirus reminds me of the days after 9/11 more than the housing and mortgage crash of 2008. Just like with the coronavirus, 9/11 was very unexpected and couldn't

Read More

Happy Friday Seneca - March 13, 2020

Calendar of EventsMarch 14th @ 9am: Clemson Marina's 4th Annual Big Splash EventMarch 14th @ 11am: St. Patrick's Day Festival and ParadeMarch  14th @ 2pm: Every 2nd Saturday

Read More

Seneca - Lake Keowee Weekly Update - March 11, 2020

If you're receiving this weekly email you have already registered on my Lake Keowee Real Estate Pro website. If you are asked to register again just use your current email as your password. No need

Read More