“This market is crazy”, “It’s insane out there”.
Boy, I’m not surprised people get nervous about making a move when the market heats up and this is the chatter we all hear. But from every change comes an opportunity.
Being active in real estate, I’m always looking for ways to create an advantage for my clients. And although this market has presented some challenges for buyers, I do believe there is a silver lining some buyers looking to upgrade might be missing.
Homeowners may think there is a 200-400k spread between what they have and what they want, but they are also overlooking what this market can do for that gap.
Look at these numbers for a second.
Homes between 400-650 k are in the most sought after bracket, and sometimes selling for more than asking price. However, the next bracket up, the one most growing families are trying to get into isn’t quite as strong, and with less competition, prices often fall short of the list price. Not convinced? Well here, look at this.
Looking at Chart 1, if we were to take a house listed for 500,000 and multiply by 2.4 % (the current difference in sale price vs list price) + add the 8% overall growth in house prices from 2019-2020 the difference is + $52,000. And looking at Chart 2, If you were to take a house worth $900,000 and adjust the listing price by -0.7% (the current sale price to list price difference) the difference is -$63,000.
In these examples alone you have just bridged the gap between what you have, and what your goal is by $115,000 in this market.
The stats are from the first month of the year, and as you can see these property brackets are almost selling in the opposite fashion. The truth is, if your house can sell for 50k more than you thought, and the house you are buying sells for 50k less than the asking price, well, that gap just got a lot smaller.
Your dream home goals may be closer to you than you thought.
And frankly, a market as well-timed for that type of property ladder climb isn’t always there. Is this something that is guaranteed? No, but when you look at what your goals are for yourself and your family the better question may be, is it worth at least looking into? Call me anytime, we may be able to tell you what you thought was impossible is actually closer than you think.