Price Point: Which Side of the Split Is Your House On

Ask a couple of people in North County how the housing market is doing, and you will probably get a couple of different answers. That is because right now, the market runs on two very different tracks, split by price point. Knowing which side of that split your house falls into changes everything about your sale, from your asking price to how long you can expect to wait before an offer comes in. Here is what you need to know.

Home Sales Are Picking Up Speed at the Top of the Market

Rates and buyer competition are shaping this market differently depending on price point. Look at recent sales data from the National Association of Realtors (NAR) and the pattern jumps right out. Homes priced under $250,000 saw sales drop 2 to 3% compared to last year, while homes priced above $750,000 saw sales climb by double digits.

What’s behind the divide? Due to higher rates and the last few years of home price appreciation, fewer buyers can comfortably afford homes at the entry-level price point right now, especially first-time buyers, so demand in that segment has slowed down. On the flip side, buyers looking for higher-priced homes have less sensitivity to high-rate environments and more room in their budgets, thanks in part to a strong stock market and their equity in their current home. That’s the real differentiator: lower-priced homes are still selling, just not as quickly, since today’s rates have shrunk the pool of buyers who can afford to buy their first place right now.

This is exactly why pricing strategy and presentation carry more weight than they used to, especially if you’re selling in that price point. Price it right from the start instead of testing a high number, make sure it shows well online and in person, and lean on an agent who can get your listing in front of every buyer shopping in your range. That’s the best way to make sure you catch the attention of one of the buyers who are still looking, and it’s how you prove your home is worth its price.

Why Some Homes Sit While Others Get Snapped Up

How fast a home sells is shifting by price range too, and the split is just as sharp. For years, luxury homes sat on the market a lot longer than starter homes. That gap has nearly closed, according to Redfin.

Buyers with deep pockets are moving fast when a well-priced home in their range comes up. As Zillow puts it, the U.S. housing market is splitting in two, with luxury homes selling at a faster pace than a year ago, alongside shrinking supply and growing bidding wars. If you’re in that price point, your house may sell faster than you’d expect, and you may even get multiple offers, which changes how a listing should be marketed and priced from day one. And no matter which side you’re on, that’s information you’re going to want up front if you want to have the smoothest sale possible.

What This Means for Your Price Point

If you’re thinking about selling an entry-level home, don’t panic. Homes in that range are still selling, just at a slower pace than last year, which means pricing and presentation matter even more right now. If you’re selling a move-up or luxury house, you’re in a good spot, since buyers looking in your price point usually aren’t as affected by today’s rates, so they’re more active and good listings are drawing real competition. Either way, your price point is the biggest factor in how fast your house sells and what it sells for.

Bottom Line

Your home’s exact price and position in this split market is the real story right now, more than anything you’re hearing in national headlines. The only way to know exactly where your North County home fits is to look at your specific price point, not the national averages. Let’s map out where your house actually falls and build a pricing strategy around it.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Jess & Co. Real Estate, LLC does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Jess & Co. Real Estate, LLC will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.