Realtor Magazine recently reported an interesting statistic surrounding the U.S. housing market. Sales growth is the strongest among homes in a higher priced tier, according to a new statistics of housing data from the National Association of Realtors. Homes above median price are outselling homes in a lower price range.
Over the past year, over 11% of homes sold were priced at over $500,000. This trend is likely to continue. Median price range varies region to region but across the U.S. the story is clear, higher priced homes are selling.
Danielle Hale, a researcher from the NAR gives her explanation of this trend, “home sales are shrinking in the lowest price tier — most likely a result of limited inventory in this price range as would be expected in a housing market where prices are rising.”
Hale went on to say that sales in lowest price range fell by more than 7 percent nationwide, yet sales in the higher-price range rose more than 30 percent in September compared to one year ago.
It’s expected that foreclosures and distressed sales will continue to taper off, leading to even smaller inventory of lower than median priced homes. This will most likely drive the median price of homes up until there is more available inventories of all price ranges.
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