Is the real estate market at a bottom? This is a question I get periodically. In this video I discuss the real estate market and prices and whether we are at a market bottom. I believe the market is bifurcated, and the segment of the market that retirees are looking at is a small percentage of the current inventory.
Real Estate Market
Real Estate Market is Bifurcated
The larger segment of the market consists of perhaps 95% of the current inventory, and includes homes that are not in the best areas, homes without great water or mountain views, homes that are old, homes with odd or outdated floor plans, foreclosures, and homes that are two or three stories or simply have too many square feet (i.e. 5,000 sq.ft.). Retirees are not in the market for homes in this segment of the market.
Real Estate Market – Nice Water View Homes Hard to Find
The smaller segment of the market, perhaps 5% or less of the current inventory, are the beautiful newer custom homes, mostly on one level (sometimes on two levels), gorgeous water and/or mountain views, and reasonably priced before negotiations.
The larger segment may not be at a bottom in terms of prices, and the smaller segment is limited in supply and this is where most of the buyers are. This smaller segment has reached a market bottom in my opinion. Which market segment are you in? Now you can answer the question: Is the real estate market at a bottom?
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