The Under $100k Buyer. Going…Going…Almost Gone


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??

2 thoughts on “The Under $100k Buyer. Going…Going…Almost Gone

  1. How can I convince my wife that maybe it would be better to buy than to rent. I’m living in the Washington DC area but wanting to move to Lexington, once we sell our house and I find a job. Seems like from looking around my mortgage would be around 500 but renting would be 800 and up.

    1. Man, after almost 21 years of marriage, I am still not that good at talking her into something. I think you’re doing good to show her that you can own for less and hopefully build some equity for your future. $800 doesn’t get you much for a rental house around here. At least not in a decent area. $1000 gets you something fairly nice.

      Hope that helps you with her!!

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