What price point does it become a buyers market? (Arlington: real estate, foreclosed)

[alibaba1579]

We're looking in a large price range ($450 - $750K) and it seems to me that after about $550K, it's much more of a buyers market. We're ultimatly looking for value in anything we buy - so would we be doing better buying at the high end of our price range? Or is that stupid b/c we'll just be stuck with a house no one will buy from us? Opinions?

[michgc]

Conventional real estate wisdom is that there will generally be more buyers for smaller/cheaper homes. There is always someone in the market for a small/cheap house. In general, larger, more expensive ones are harder to sell.

I have no idea financially which price point you should buy. I think you should look at your needs now and in the future and buy based on that, rather than what the market may or may not do.

[Tish Thompson]

When supply is greater than demand. If the "tsunami" of foreclosed properties I've been hearing about for the last year is ever released, you'll see the perfect example of a buyers market.

Originally Posted by alibaba1579

We're looking in a large price range ($450 - $750K) and it seems to me that after about $550K, it's much more of a buyers market. We're ultimatly looking for value in anything we buy - so would we be doing better buying at the high end of our price range? Or is that stupid b/c we'll just be stuck with a house no one will buy from us? Opinions?

[normie]

Originally Posted by Tish Thompson

When supply is greater than demand. If the "tsunami" of foreclosed properties I've been hearing about for the last year is ever released, you'll see the perfect example of a buyers market.

I think that "tsunami" is wishful thinking on the part of people who want to see a big drop in prices. Hope it works out for them, but instead of a tsunami I suspect it'll be more like a steady drizzle (makes everyone feel wet, but isn't strong enough to do any damage).

[alibaba1579]

Originally Posted by michgc;11223009.

I think you should look at your needs now and in the future and buy based on that, rather than what the market may or may not do.

I think that is an excellent point! My Dh and I both tend to get caught up in getting the "best" deal. I was just curious if there was a certian price where people were still getting deals. By that, I mean getting 10% (or more) off the list price. Seems to me anything in the $500K+ range sells at 5% - 10% below asking price - sometimes after 100 or more days. Houses less than $500K, especially stuff in the $350 - $450K range are going for asking price (or even slightly above) in a matter of days. Seems like it is a sellers market at the lower end of our range, and a buyers market at the top end. Common sense is telling me to buy in the buyers market price range - but it feels like I'm missing something.

[Tone509]

Originally Posted by alibaba1579

We're looking in a large price range ($450 - $750K) and it seems to me that after about $550K, it's much more of a buyers market. We're ultimatly looking for value in anything we buy - so would we be doing better buying at the high end of our price range? Or is that stupid b/c we'll just be stuck with a house no one will buy from us? Opinions?

My layman's opinion is that the home that is now $550K was probably $650-750K or more at the height of the bubble. So if the mortgage is affordable for you - and you plan to stick around for longer than the "minimum" five years - this might be your time to jump in... especially if you're looking in Arlington/Alexandria/Fairfax County.

[dlumpen]

Check out www.redfin.com if you haven't already. In the search feature, you can create graphs in price ranges and zip codes, etc. That can give you an idea of what's going on.