Buyers Market Pushing Luxury Home Sales to New Highs
We previously reported how a shortage of inventory in the starter and trade-up home markets is driving prices up and causing bidding wars, creating a true seller’s market. At the same time, in the premium home market, an over-abundance of inventory has started to see prices come down and put buyers in the driver’s seat, creating the beginning of a buyer’s market.
Last week, the National Association of Realtors released their Existing Home Sales Report which shed some additional light on the impact of inventory levels on sales in each price range.
The chart below shows the year-over-year difference in sales at each price range.
Buyers Market Pushing Luxury Home Sales to New Highs
The under $100K range has shown declines in recent years due to the shortage of distressed homes available for sale (just 5% of sales this past month, compared to 35% in January 2012). Sales in the next two price ranges are no doubt being hindered by low inventory as buyers compete for the same home.
Buyers Market Pushing Luxury Home Sales to New Highs
NAR’s Chief Economist, Lawrence Yun, explained:
“Those able to close on a home last month are probably feeling both happy and relieved. Listings in the affordable price range are scarce, homes are coming off the market at an extremely fast pace and the prevalence of multiple offers in some markets are pushing prices higher.”
The biggest surprise? This is the first time in years where the $1M and up price range had the highest jump in sales when compared to last year and to all other price ranges (29.1%)! The two price ranges right underneath the $1M range were a close second and third. As the price went up, so did the sales!
With additional inventory available in the higher price ranges, and the economy improving, many luxury buyers are finding it easier to find their dream homes. Yun commented,
“The job market in most of the country is healthy and the recent downward trend in mortgage rates continues to keep buyer interest at a robust level.”
Bottom Line
If you are one of the many homeowners who is looking to sell your starter or trade up home and move up to a luxury home, now is the time!
Call Us Now To Sell Your Home…
Office: 909.985.9392 or Text Us: 714.657.6634
Michael Jacksons Sister, LaToya Loses Home to Foreclosure
Word has it that LaToya Jacksons condo in Las Vegas was auctioned at forelcosure August 31... The 1,856 Sqaure foot condo located the the exclusive Regency Towers located at the Las Vegas Country Club, had $750000 in notes. It appears that she went into default in...
Wells Fargo Gives VP the Boot!
It appears that Wells Fargo plays no games with it's execs that take advantage of the system. Cheronda Guyton, a VP in Wells Fargo Foreclosure Assets division (and USC Graduate) was giving the "boot" after word spread that she was living in a recently "foreclosed"...
First Time Home Buyers Tax Credit Ends November 30, 2009
If your considering purchasing your first home...don't wait much longer to take advantage of the $8000.00 tax credit. You must meet the qualifications of the 1st Time Home buyer to Qualify. The tax credit is up to 10% of the purchase price of the property not to...
Home Prices Stabilizing? Not in the Immidiate Future
Another great article from our good friends at The Truth About Mortgage .com. The reason we read their articles is that they tell the truth and no sugar coating necessary... No spin...no hype. Fact is, the housing industries strategists are spinning their data to show...
1000 Banks Expected to Fail Over the Next 10 Years
In a recent article by The Truth About Mortgage .com, John Kanas (Heads BankUnited) states that he expects over 1000 bank failures over the next 2 years...primarily due to the mortgage crisis... "So far this year, 81 banks have failed, a large number by any stretch,...
Current State of The Real Estate Market
Tim Harris...Real Estate State of The Union You're under water and can't see the sky...listen now. Agents...you need to get involved and help your community. As a Real Estate Agent, you can't simply rape and pillage during these times...make a difference in your...
Wilshire…Say It Aint So! Foreclosure Over A Great Offer???
AKA...Quality Loan Service Corp.... This one has me baffled, these days most lenders have adopted some "new" process or rule when dealing with Short Sales. Story goes like this: We listed a home that had a pending foreclosure date about 7 months ago. Offers started...
Short Sale or Foreclosure…..Risks To Consider
The housing market is crashing, many families have felt the strain of loosing one or both incomes. We are working with a family right now that is loosing their home due to job loss for one and reduced hours for the other. They could not afford to keep the home with...
A Candid Conversation with a bank negotiator….Short Sale Style!
It's not often that I get a Short Sale Negotiator on the phone that has the willingness, skill and desire to do their job. I had spent the entire morning on calls to multiple lenders, my last call was to Washington Mutual. While on hold trying to find out why it had...
President Obama, Stop Talking and DO SOMETHING!!!
Enough already! I'm sick of the lip service.... Hope for Homeowners is an embarrassment to Mr. Obama. If you live in California, you have realized that a loan modification is easier said than done.... Lenders have been instructed to help their borrowers find...
“Wachovia Short Sale” will Change the Real Estate Industry
Check this out…Wachovia is setting the benchmark for the Short Sale process…the days of 30, 60, 90 days waiting for a short sale approval are over. Today on a call with Robert “Bobby” Jackson; Asset Manager, Wachovia, we were treated to one of the most exciting and...
Some Light Reading…Life In The World Of A Short Sale Real Estate Agent
Today was one of those days... Up's and down's from the moment the phone calls started at 6:00AM. In the world of Short Sales, there are so many moving parts. Usually a seller has 2 loans to deal with and most of the time they're not the same lender. Needless to say...
Short Sale? What To Expect When You Get An Offer
Once you have listed your home for Short Sale, you have agreed to let the bank/your lender decide the ultimate "Terms" on which the home will be sold. A Short Sale is unique. Although you are the homeowner according to the note & or deed recorded when you...
Short Sales..Recourse Loans…Foreclosure…Deed-in-Lieu
If there was a way to put a dollar in the piggy bank for every question we are asked about recourse loans and what the lender is going to do in the future....well...let's just say we could afford some great dinners on a regular basis! Being Real Estate Agents...
Don't Believe Everything you hear about Short Sales….
It's amazing the crazy things that "professionals" in the Real Estate industry are out telling the public! At a recent listing appointment I was shocked to hear from the homeowners that they were told by a "Short Sale Expert", that their lender would rather foreclose...
Obama Administration To Incentivize Servicers When They Approve Short Sales!
It's not everyday that we get such amazing news from the White House....today the Obama administration announced new and updated details regarding the Making Homes Affordable (MHA). Program updates include details on Foreclosure Alternatives. These alternative will...
Got Patience?….Someone Say Short Sales….
Great news today for anyone contemplating a Short Sale....Also validation that Banks don't want to Foreclose if there is another alternative. Citi Mortgage announced that their pre-foreclosure preventions outweighed their Foreclosures 10 to 1 during the first...
Should I Short Sell or Foreclose?
We still get asked this frequently. In today's market, the short sale is widely accepted and looked at favorably by the banking industry. Why? Simply said, banks net more money from a short sale on average than they do an foreclosures...as much as 15 % more. The cost...