High-end real estate takes charge of the housing market
Posted on Tuesday, December 16, 2014 at 8:03:19 AM
One positive sign for potential homebuyers looking for affordable residential financing and a new home is an increase in inventory. More homes are for sale - with many moving quickly - but there is a downside: Sales are dominated by high-end real estate.
According to a report from Zillow, supply is increasing for expensive homes faster than low- and median-priced homes. In October, the highest-priced tier of homes for sale ticked up by 82.2 percent, followed by bottom-priced homes at 68.3 percent.
Furthermore, this increase in inventory has translated into sales as well. Redfin found that million-dollar real estate sales rose by 9 percent in the third quarter. By comparison, total sales dropped 1.2 percent during that time. A number of cities had a high number of luxury homes for sale, including San Francisco, Chicago and Boston.
While this trend may be concerning for the average buyer, there are reasons to be hopeful about the housing market. Overall inventory is on the way up, which means affordable homes are on the market. Residential financing rates are also near historic lows, opening more doors for potential buyers.