Clear Capital recently released a new report which studies the rate of price increases and then compares the year-over-growth at high and low ends of the market. The findings show that prices for single family homes for sale and condos for sale are increasing at a faster pace for lower end markets that they are for top markets.
Looking deeper into the report, lower priced real estate is experiencing steady price appreciation, while the more expensive luxury properties have seen a leveling off of prices. Clear Capital’s VP of research and analytics, Alex Villacorta believes these findings should be seen as buying opportunity for first-time buyers and investors.
Mr Villacorta explains, “As the housing recovery continues to unfold, we are clearly seeing a growing dichotomy between the low-price tier and top-price tier market performance. By and large, the low-price tiers of the top and bottom Metropolitan Statistical Areas (MSAs) are significantly outperforming their top-tier counterparts.”
Furthermore, regions with excess inventory for distressed properties, such as real estate foreclosures are experiencing growth in prices at the low end of the market outpacing the upper tier by almost 20 percent. A reason for this may be more expensive properties saw lower price declines during the housing bubble and as a result, these properties bounced back faster than lower end properties. You can read more about this here...