WHAT’S SELLING AND WHAT’S NOT

Last week the Birmingham Bloomfield Chamber of commerce hosted their annual Real Estate Forecast luncheon. The format was based on questions from the moderator and answers from each of the three panelists. The panel consisted of three local real estate experts.

One of the most interesting questions asked was, “Is anything selling in this market and, if so, what kinds of homes are selling and what kinds are not?”

The simple answer given was that well staged homes that are correctly priced are selling and anything overpriced or not properly presented will simply languish on the market. The discussion went on to further explain the current market.

The bulk of activity in the current market is in the price range below $400,000 with a large amount of activity between $100,000 and $300,000. This segment of the market is characterized by first time buyers and investor driven distressed sales. Keep in mind that this price range now represents properties that formerly sold for up to $600,000.

There is also some activity in the luxury market. While the number of sales of luxury homes is far less than in the lower price ranges, well heeled buyers are also taking advantage of value-priced high-end homes.

There is an obvious void in activity between $400,000 and $1,000,000. This price range is too high for most first time buyers and investors typically find a higher rate of return in lower priced properties. As sales continue to increase in the price range just below this, we may well see activity in this market segment begin to pick up as potential buyers for homes above $400,000 begin to sell their existing homes.

Regardless of price range, the best advice to any seller is to make your property as physically presentable as possible and engage the expertise of a Realtor to price and market it correctly.