The Real Estate Market is HOT!
Zillow estimates that homes sold more quickly in 2017 than ever before. 2018 seems to be on pace to beat 2017.
However, one segment of the real estate market seems to be lagging.
Prices at the top 5% of the real estate market increased just 5.1% in 2017, almost 2% lower than the rest of the market.
Here is what’s going on:
Affordability does not seem to be an issue: More Americans can afford a top-level home than ever before.
It comes down to two other factors:
First, uncertainty surrounding the new tax bill could be affecting luxury homes more strongly, and this might be the reason why some potential buyers are choosing to sit and wait until the details of the tax plan become more clear.
Second, there is simply a greater supply of luxury homes compared to other priced homes.
In fact, 53% of the available housing inventory is in the premium segment (compared to 23% for starter homes and 24% for trade up homes).
In other words, supply and demand are more evenly matched at the top of the market, while in other segments, demand far outstrips supply.
So What Does This Mean For You??
If you’ve been thinking about trading up to a luxury home, now might be the perfect time to do so.
The red-hot market demand for starter and trade-up homes means you could sell your home for top dollar and record speed.
The limited price growth and greater inventory at the luxury end means you could have your pick, and find a special, unique and customized home that perfectly suits your preferences.
If this sounds appealing, and you want to take a look at some of the luxury homes recently on the market you can get started by contacting Penny & Team @ 206 842 8421 / 360 697 9966. Or emailing Penny@TheOrginialPenny.com
Serving: Bainbridge Island, Poulsbo, Silverdale, Kingston, Bremerton, Pt Orchard & Pt Ludlow