Want to take advantage of the market? Need to know what price range is suffering the most right now? Well, if you are buying in the $300-500k range, now is a pretty darn good time to pull the trigger……may get even better in the months ahead.
Let me back up a bit and give you the history of how this time came to be. During the last half of last year, it was easier to sell a $300k house in Lexington than it was a $125k house. The tax credit to first time buyers lured the whole years worth of them into doing it in the first several months of 2010. Meanwhile, rates were crazy low. During that time, many buyers thought that they’d part with their old house and move on up to their pinnacle home.
Flash forward to this year. The first time market is back and the range that is seeing the most action is the sub $200k again. FYI, Lexington is mainly a $120-180k town that moves up to $200-250k if they stay here long enough. That is the bulk of the Lexington market.
Soooooo, what about the $300-500k houses? It is a little tougher in that price range now than it was last fall. Rates have fallen, but still aren’t as good as they were. The economy is a big concern. People are wondering if they can make do with less. Only the best ones that are priced right will sell. Number wise, I think the first half of this year will be close to the last half of last year for this price range. The month isn’t over yet, but if you include the pending sales, we’re down about 10%………BUT WE JUST REACHED THE PEAK MONTHS OF ACTIVITY FOR THE WHOLE YEAR. SPRING SHOULD PRODUCE MORE SALES THAN A LATE SUMMER/FALL/EARLY WINTER MARKET, RIGHT??
So, what is my advice if you are a buyer who can drop $300-500k in a house? Unless rates start to go back up some, buy now or hold out until fall. I think if we have a pretty dry summer for the seller’s in that price range, we’ll see prices drop a bit. Short of some other catastrophic economic event, I think it will be temporary. I really think the low rates of last year created this lull just as the tax credits did last fall for entry-level houses…….just sayin.