The Rising Competition between Move-Up & First-Time BuyersReturn to Blog
A recent report from Realtor.com® confirms that lower mortgage rates have piqued the interest of more buyers this fall. However, the consistently shrinking inventory of lower-cost homes is not keeping up with the high demand of buyers.Highlights:
• In September, inventory levels were 2.5% lower than a year ago
• Mid-market homes—those priced between $200,000 to $750,000, which make up the largest segment of housing inventory—showed zero percent growth in September.
• “The mid-tier of housing represents nearly 60 percent of homes for sale on the market, making it a solid indicator of how tight inventory levels are in the U.S.,” says George Ratiu, senior economist for realtor.com®.
• Further, homes available under $200,000—the entry-level tier--have decreased 10% over the last year.
• Meanwhile, homes listed for sale over $750,000 continued to grow, in September reaching 4.7 percent over levels from a year ago.
• However, realtor.com® economists note that if strong homebuying demand, fueled by lower interest rates, continues to persist into the fall, the inventory of homes in this upper-tier price range also could see declines by February of the coming year.
• “While lower mortgage rates and the arrival of fall promised a reprieve, conditions continue to tighten as demand remains strong. September inventory trends, especially in the mid-market, may be the canary in the coal mine that we could be headed for even lower levels of inventory in early 2020.”
• The median list price nationwide in September was $305,000, up 4.3% over last year. Nationally, homes sold at an average of 65 days in September, one day slower than a year ago.
Tell us your thoughts below:
• How can move-up buyers edge the first-time buyer competition?
• What are some ways that first-time buyers can top move-up buyers in search of lower-cost homes?
For More Information set up an appointment to speak with Darryl Glass, our lead Realtor and Broker Associate by clicking here: Darryl's Calendly