Anyone shopping for a home today under $500,000 is likely to find frustratingly few choices. Although inventory has doubled from historic lows last year, the region’s most popular price range – roughly $200,000 to $450,000 – remains a strong seller’s market with scant supply compared to demand.
Buyers who can afford a home priced at more than $500,000 are apt to encounter better selection, time to shop and room to negotiate. That’s because supply in the higher price ranges is much greater relative to the number of purchasers.
“At $500,000 and below, you’re going to have consistent competition in the marketplace and you’re going to have to plan to put money into that home to get it where you want it,” said Pat Shea, president of Lyon Real Estate. “In the $500,000 to $1 million range, you’re going to have choices, and you’re likely going to be able to have a turn-key property.”