Even in a local real estate market, there are vast differences between what houses are doing in different market sectors within the same market. Where I live, sales of houses that cost more than $300,000 have slowed considerably; and houses that cost more than $450,000 have stopped dead. I know because we got caught with an upscale fixer-upper and after 6 months of trying to sell it, accepted an offer $45,000 below appraised value. Why? Because we got all of our money back and could buy something else.
What did we buy? The very next day we bought an upscale mobile home on a one third acre view lot for $139,000 and sold it in a single day for $179,000 cash to a buyer who lived across the street. She wanted it for her son who sported a flashy 520 FICO score, so it took three months to close. Still, he got financing even with that low score primarily because there is a stated government policy to help low income people buy their own homes. All we had to do was to find a lender who would go along with this.
My point is, that even local markets have price tiers that move differently from each other. When you take the time to find the right tier, and to avoid the wrong tiers, you can continue to make a lot of money. Are you looking at all your local market sectors to see where the hot spot is? You should.
