If your house no longer fits your needs and you are planning on buying a luxury home, now is a great time to do so!
Trulia’s Market Mismatch Study recently found that in today’s premium home market, buyers are in control.
The inventory of homes for sale in the luxury market far exceeds those searching to purchase these properties in many areas of the country. This means that homes are often staying on the market longer which can eventually lead to a price change.
Those who have a starter or trade-up home to sell will find buyers competing, and often entering bidding wars, to be able to call your house their new home.
In Long Beach, for example, the average time on the market for homes listed between under $620,000 (the city’s median home price) was just 32 days in September 2017, and the average sales price was 100% of original price. There was a 1.7 month supply of homes for sale in this price range.
Meanwhile, for homes over $1,000,000 in Long Beach, the average sales price was 94.2% of the original list price for September 2017, and there was a 4.4 month supply of homes for sale. Even so, the average time on the market was still low, at just 38 days.
In nearby Rossmoor, September 2017 saw an average time on the market of 78 days for homes above $1 million and a 3.5 month supply.
The sale of your starter or trade-up house will aid in coming up with a larger down payment for your new luxury home. Even a 5% down payment on a million-dollar home is $50,000.
But not all who are buying luxury properties have a home to sell first.
In a recent Washington Post article, Daryl Judy, an associate broker with Washington Fine Properties, gave some insight into what many millennials are choosing to do: “Some high-earning millennials save money until they are in their early 30s to buy a place and just skip over that starter-home phase. They’ll stay in an apartment until they can afford to pay for the place they want.”
And there are always some buyers of various age groups who have the financial means to purchase a home and either keep their existing home or sell it after acquiring the replacement property.
The best time to sell anything is when demand is high and supply is low. If you are currently in a starter or trade-up house that no longer fits your needs and you are looking to step into a luxury home, now’s the time to list your house for sale and make your dreams come true.