Buyer’s Market Helps Premium Home Sales Soar

We previously reported how a shortage of inventory in the starter and trade-up home markets is driving prices up and causing bidding wars, creating a true seller’s market. At the same time, in the premium home market, an over-abundance of inventory has started to see prices come down and put buyers in the driver’s seat, creating the beginning of a buyer’s market.

Last week, the National Association of Realtors released their Existing Home Sales Report which shed some additional light on the impact of inventory levels on sales in each price range.

The chart below shows the year-over-year difference in sales at each price range.

Buyer's Market Helps Premium Home Sales Soar | Simplifying The Market

The under $100K range has shown declines in recent years due to the shortage of distressed homes available for sale (just 5% of sales this past month, compared to 35% in January 2012). Sales in the next two price ranges are no doubt being hindered by low inventory as buyers compete for the same home.

NAR’s Chief Economist, Lawrence Yun, explained:

“Those able to close on a home last month are probably feeling both happy and relieved. Listings in the affordable price range are scarce, homes are coming off the market at an extremely fast pace and the prevalence of multiple offers in some markets are pushing prices higher.”

The biggest surprise? This is the first time in years where the $1M and up price range had the highest jump in sales when compared to last year and to all other price ranges (29.1%)! The two price ranges right underneath the $1M range were a close second and third. As the price went up, so did the sales!

With additional inventory available in the higher price ranges, and the economy improving, many luxury buyers are finding it easier to find their dream homes. Yun commented,

“The job market in most of the country is healthy and the recent downward trend in mortgage rates continues to keep buyer interest at a robust level.”


If you are one of the many homeowners who is looking to sell your starter or trade up home and move up to a luxury home, now is the time!

96c51f55 474f 4650 b1c3 9eb3671ba381 7e4b1fca 67e0 44c7 bbe2 92f7daaf77fc 1cd47643 f23d 4039 8f6a a0ca5c3a9547 d7e8b2bf cbcc 4161 8dcc bb19d057e164 2f2d871a 96f1 4a3d 9d5d 9e4fe0493f16 5c4dfa28 0c63 4071 a035 d7552df6f5f4 929dfc32 65f1 4f0a be6e 04dc59035657 fb362e9d af31 440b 8ca4 2590522f0465 97dfbda0 9f19 4af3 ba59 fdac7005df8c f632b0d8 8dbb 4c60 862a c16dd784b518 c6cc2b17 5a92 46dc a44e 05e3b50b6585 af8e4fc2 4e3b 4421 98d6 50fe2d71a86e d834c286 7a31 4120 ac44 08d1fded2e13 30397f32 34b4 4728 b0ad d970b782361b 39cabd90 d719 467e ad12 08e406a007b6 332bf761 7394 431b b766 8c8ae895d63e 008f5002 40c9 4e94 a604 772e4508fa76 86b90bda 1507 415b ae80 c80a323da640 ac731129 273f 4e1d a9d3 0686f8d143e0 571c3f42 b46c 447f a853 c93e0d6bd8a3 b8661e11 363f 4f8f bf6a 882794fe6ddc 0af193a7 1aab 4c19 b303 2531c38f8916 6c4ccb5b 3b4f 4770 8591 1dd761df24c5