Team Taylor REMAX - November 2019

NOVEMBER 2019

205.979.8500 | WWW.MYNEWBIRMINGHAMHOME.COM

A Quick Breakdown of the Home Market KNOW YOUR HOME

With all the nuances in the real estate market today, you need a trusted and local advisor to help guide you through the industry. Take market terms, for instance. There are three distinct subsections of the market: the starter home, the middle home, and the luxury home. Depending on the area, the price point for each subsection will vary. For example, a starter home in Los Angeles, California, is much more expensive than a starter home in Cheyenne, Wyoming. Before you invest any of your own time researching these categories, consider this quick breakdown. These types of homes are typically bought by first-time homebuyers or investors looking to flip the property to make a profit. These houses are often space- efficient and in need of at least a few small repairs. Nationwide, houses that fall within this market currently are in short supply. This means there aren’t enough homes on the lower end of the market to meet consumer demand. When there’s a low supply of homes, the increase in demand raises their value and drives bidding wars, which is why these houses typically sell above their list price. Starter Homes This market is commonly referred to as the “move-up market.”The consumer in this market is moving up to a larger home with more features, all at a higher price. These types of houses will still have the space efficiency of a starter home “Essentially the sky is the limit for luxury home designs. According to Realtor.com, this segment is growing at a staggering rate of 4.7% year over year.” Middle Homes

but with fewer necessary repairs and more parking spots. Across the country, this segment of the real estate market is more balanced than the starter home segment. Currently, this market has a six- month supply of inventory. While it is more balanced, the section does lean toward a sellers’market.

Luxury Homes

This segment is the high end of the market with bigger homes that have even more custom features and upgrades. Some of the features include swimming pools, greater square footage, and wine cellars. Essentially, the sky is the limit for luxury home designs. According to Realtor.com, this segment is growing at a staggering rate of 4.7% year over year. Due to the increase in supply, this segment is more of a buyers’market. In the end, depending on the segment of the market you’re looking at, you’re going to need the advice of a local market expert. The market can be difficult to navigate, so let’s get together and help you traverse the homebuying/selling process.

—Drew Taylor (205) 283-1602 drew@taylorsold.com

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