Whats Does An Uneven Market Mean For Homebuyers

Whats Does An Uneven Market Mean For Homebuyers

Since the housing crash and financial crisis, a slow and steady recovery has taken place. Home prices, for example, have been rising now for a few years and, in some markets, have surpassed their previous peaks. 


But though there has been progress, there is an unevenness about the recovery. For example, the higher end of the housing market has rebounded much quicker than the lower end has. And, according to Zillow chief economist, Dr. Svenja Gudell, it's led to some disparity between the two ends of the housing market. “Most new construction has been at the higher end of the market, so demand for the limited supply of entry-level homes is pushing up their values, but these homes also lost more value when the bubble burst,” Gudell says. “Many of these homeowners are still waiting to see their homes come back to where they were about 10 years ago.” So what does this all mean? It means limited supply will lead to more competition for the entry-level homes that are available. 


But, as demand pushes home prices higher, there may also be more current homeowners deciding to sell their starter homes in search of something bigger. As that happens, prices will level off and there will be more choices for buyers looking for an affordable, entry-level home.


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Phone: 214-868-2959
Dated: September 25th 2017
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