We have homes in the lower price ranges having a huge amount of activity to the point of multiple offers right now, and a good percentage of them driving the price over asking.
A large pool of buyers and a shrinking inventory = supply and demand = increase in home values in the lower price ranges.
Homes in the 1.5 million range and above have fewer activity, and also much more difficulty obtaining loans in that price range.
A small pool of buyers and an abundant inventory = supply and demand = deccrease in home values in the upper price ranges.
What this is going to do is narrow the gap somewhat between the homes in the lowest and highest ranges.
If you're a seller in the lower price ranges, CHOOSE THE OFFER THAT WILL MOST ASSURADLY CLOSE!
If you're a seller in the upper price ranges, WORK LIKE CRAZY WITH ANY OFFERS THAT COME IN!
I think you are right, things are moving, especially the lower priced homes. I hope to see a positive change in all levels of the market soon!
Bridget,
It will, just like always. But the lower price range homes have a kick start.
Ralph,
Good advice to seller as the market adjusts in front of us. Do you think the 8k tax credit will be extended? It seems to be helping in that 1st time home buyer range.
Carra Riley aka Cosmic Cow Pie
Ralph, We're seeing the same thing here in Honolulu, Hawaii. Homes under $1m are in high demand, as well as condos under $500k.
It does seem as if this is bringing a sense of normalcy back to the market.