Quote:
Originally Posted by DoubleF
My understanding is that the demand and interest in the sub $500k homes is still high which allows them to not suffer as greatly in the price adjustment. A $500k plus home needs to drop its price to increase the pool of suitors drastically to find a buyer.
For instance, the sub $500k homes/starter homes have interest from new home buyers, individuals downsizing/downgrading for practical purposes/ability to afford a home, new immigrants/new to the city, multi home owners etc. Afford ability allows for the price to fall slower. The lower price doesn't need to go lower for a hit in a pool of potential suitors.
The average price will still fall as the floor doesn't move as much, but the top prices drops dramatically.
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Oh, I fully understand how that starter/midrange price range works. But, assuming someone bought a house 3 years ago, assuming the economic environment was exactly the same, there's really not much reason for a price increase beyond annual inflation. So, with everything being equal sure, some small inflationary gains.
But we're not equal. We're so gosh darn unequal it borders on ludicrous that the prices would be up over 3 years. I think it's stupid that a realtor would likely suggest me listing my place for $75k more than I paid.