Depending on the Price, You’re Going to Need Advice

To understand today’s complex real estate market, it is critical to have a local, trusted advisor on your side – for more reasons than you may think states Mike Eastwood CEO of West USA Realty of Prescott.

In real estate today, there are essentially three different price points in the market: the starter-home market, the middle-home market, and the premium or luxury market. Even what city you're looking at from Prescott, Prescott Valley and Chino Arizona. Each one is unique, and depending on the city, the price point in these categories will vary. For example, a starter or lower-end home in Downtown Prescott, Arizona is much more expensive than almost any other part of the county. Let’s explore what you need to know about each of these tiers.

Starter-Home Market: This market varies by price, and these homes are typically purchased by first-time homebuyers or investors looking to flip them for a profit. Across the country, homes in this space currently have less than 3 months of inventory for sale. That means there aren’t enough homes on the lower end of the market for the number of people who want to buy them. A low supply like this generally increases competition, drives bidding wars, and sets up an environment where homes sell above the listing price. According to data from the National Association of Realtors (NAR) on realtor.com,

“The desire for affordability continues to push down the inventory for homes listed for less than $200,000.00.”

Middle-Home Market: This segment is often thought of as the move-up market. Typically, the buyer in this market is moving up to a larger, more custom home with more features, all coming at a higher price. Across the country, this market is looking more balanced than the lower end of the market, meaning it has closer to a 6-month supply of inventory for sale. This market is more neutral, but leaning towards a seller’s market.

Premium & Luxury Home Market: This is the top end of the market with larger homes that have even more custom features and upgrades. Nationwide, this market is growing in the number of homes for sale. In the same realtor.com article, we can see that the year-over-year inventory of homes in this tier has grown by 4.7%. Today, there are more homes available in the premium and luxury space, leading to more of a buyer’s market at this end.

Bottom Line

Depending on the segment of the market and the price point you’re looking at, you’re going to need the advice of a true local market expert to help you successfully navigate the home-buying or selling process. If you like to learn more about the Prescott, Arizona real estate market contact Mike Eastwood CEO of West USA Realty of Prescott at 928-777-8331 or visit us at www.westusaofprescott.com and Mike will introduce you to one of his professional real estate agents. If you like to search on your own to start down the FREE home search app http://app.westusa.com/WUSAT1M