If you’ve been thinking about selling your starter home and upgrading to your dream home, now might be the perfect time to take the leap. According to the Institute for Luxury Home Marketing’s latest report, housing market conditions are strong for those who are ready to upgrade. Essentially, the luxury home market is a buyer’s market, and the starter home market is a seller’s market. So, if you upgrade soon, you could potentially hit the best of both. What does it all mean? Let Eave lay out all the details.
Starter Homes = Seller’s Market
Currently, demand for starter homes is booming. Millennials are finally buying their first homes, and there are inventory shortages of entry-level homes across the country. Because there aren’t enough starter homes on the market to meet the demand of buyers, it’s really a seller’s market out there. This gives house sellers the upper hand. Typically, a seller’s market results in bidding wars amongst buyers who are all-too-willing to pay over the asking price. In fact, this past summer, homes were selling for record high prices. If you put your starter house up for sale during a seller’s market, there’s a good chance you’ll get a strong offer for it. You can use that extra money towards a down payment on your dream home upgrade.
Luxury Homes = Buyer’s Market
Currently, luxury homes are in more of a buyer’s market than starter homes. Essentially, that means that there are a lot of luxury houses going on the market, but not as many buyers looking to make offers. When demand is low, home prices fall and sellers have to compete for buyer interest. This translates to a boon for you if you’re looking to upgrade to a luxury home. You can expect to find many luxury options on the market, and with relatively low home prices.
Of course, there is much less of a buyer’s market if you live in a popular area such as Silicon Valley, San Francisco, Seattle, or Denver. These markets tend to be quite competitive, and therefore luxury homes within them are also priced competitively. However, it’s still possible to get a deal if you know where and when to look.
October is the Best Month to Buy a Home
Market data routinely shows that October is a great month to buy a home. According to RealtyTrac’s analysis of 15 years of home sales, October buyers pay 2.6 percent below market value for their homes. Why? During Autumn, there is far less competition for buying a home. Most buyers are looking to secure a house during the peak selling season, which runs through spring and summer. Many buyers drop out of the search as the weather changes and the kids go back to school. Furthermore, sellers who keep their homes on the market during fall are usually motivated to sell as soon as possible. That means they are willing to cut a deal. Another great reason to buy in Fall? Your local real estate professional will have far more quality time to spend with you. And who doesn’t want individualized attention while purchasing a home?
To see how Eave can give you a leg up against the competition, check out our first rate luxury buyer programs.