Exodus to City?
Sales are up, prices are on the rise and the number of days a house lingers on the market before being sold is on the decline, according to the latest data from the HomeExpert Market Report from Berkshire Hathaway Home Services. About 81 homes priced $1.5 million and above are traded at the peak of 2006 in Main Line. Whereas only 43 luxury homes are traded last year in Main Line. Recent trends indicate that sales slowing down in upscale market irrespective of the economic recovery.
There are limited buyers for properties in $1.5 or more range. At the same there is clear indication of drop in demand for luxury properties as well. Clean layout and more efficient housing are trending as opposed to bigger homes. Maintenance time, effort, and cost go as the square footage increases for housing. When the real estate market is doing so well, why would it distract people from going big on home?
The different factors that influences “big home” decisions is mainly urban living – people are moving back into Philadelphia from the suburbs. A condo is much easier to maintain than a big home in Main Line. Some of the big old properties are outdated – now people look for more updates from stainless steel appliances to a “spa-like” bathrooms. It is quite an effort to renovate and it costs more money to upgrade bigger houses. A turnkey, high-end apartment with all the cozy updates can lure potential buyers away from old properties. Until this trend reverses, market could see more upscale homes going to auction.
Glorious fall ended hot summer, this means real estate sales activity is expected to pick up as we head into the end of the year. This is the best time when buyers and sellers can take advantage of lower competition. With mortgage rates still hovering around 4%, there market is ripe with opportunity for anyone considering a move. So, are you moving to the city or to the burbs? Whatever it is we could help you move in to your desired location. Give us a call or write to us.