HELLO UNDER $100,000 BUYER…….ARE YOU OUT THERE????
I don’t think you are, and I don’t blame you. With prices and interest rates so low, why settle for a $90k three bedroom, one bath house without a garage when for only $143 more a month you can get not only a newer house, but one with an extra bathroom and a garage?
Between the listings I have and from watching the under $100k market every week, I think it is safe to say that few people are looking under $100k right now that aren’t investors. I have one of the best $90k houses I have ever seen listed right now. I didn’t expect it to take 45 days to sell. We finally got an offer though, and a good one at that. Every week I scroll through all the new listings, pending sales, and sold listings from $0 all the way up to $550k. Most of the under $100k ones are foreclosures that get bought by investors. The $100-150k is super strong at the moment.
Let me flash back to 2005-2006. Back then, realtors dreaded a buyer who said their peak price point was $100k. There just wasn’t much out there back then for that kind of coin. Today, $100-125k seems to be where most of those buyers land. Whip out your mortgage calculator and you’ll find that the payment is the same at today’s 4% rate for a $125k house as it was for a $100k house at 6% back then.
We all know that the higher end houses have suffered the most with values over the past several years, but I am now worried about the lower end. Who would have ever thought that record breaking affordability would mean that nobody wants the most affordable houses there are??