“..there is a shift to lower-priced homes across all types in the region. In the first half of 2009, about 40% of condominiums sold for less than $200,000, compared with only 19 percent of condominiums sold during the same period in 2008. Similarly, 44 percent of single-family attached/townhomes sold for under $300,000 in 2009, compared to 24 percent in 2008. And among single-family detached homes, 34 percent of those sold in the first six months of 2009 sold for less than $400,000..”
These trends are pretty obvious because of lower-priced listings set the direction for the first half of 2009. In the first half of 2009, there were nearly 2,000 listings priced under $200k. I checked the MLS listings to see where we are. As of today (9/9) there are 331 listings for all types of homes in NVAR jurisdiction price under $200,000 or 8 percent of the total listings. A huge drop from 2,000 to only 331 listings in 3 months! Maybe this is a sign that soon buyers will be in the $300,000 range since the 200k homes supply have depleted. Even then between $300,000 to $400,000 range, there aren't too many homes on the market. Only 538 listings currently on the market. Compare that to 2,773 listings, which is four times the inventory of homes price over the $400,000 mark.
Here's the thing. The stumbling block to purchase higher price home is: down payment. Yes, the supposedly move-up buyers, who could push for the purchase nowadays need 20 percent down to to move up, as per Fannie Mae. That’s why the market for higher price home is moving really slow..