Tuesday, May 16, 2017 / by Jason Sampson
Are you having trouble finding the ideal home in your price range? Don’t worry, you’re not alone. The market mismatch is the measure of search interest versus available listings and it’s impacting both buyers and sellers across the country.
Nationally, the average market mismatch score rose to 7.4% during the fourth quarter of 2016. When breaking homes down into starter, trade up, and premium, Trulia found that most shoppers are searching for starter and trade up homes while most listings are actually premium homes. Starter home searches accounted for 26% of all home searches when only 21.2% of listings were priced as a starter home. The lack of starter and trade up homes indicates an unbalanced market.
A Breakdown of U.S. Metros
Each metro tells a different story about mismatched markets, and it is affecting buyers and sellers in various ways. If a great number of home values in an area fall within the same price range as others, options for buyers will be limited. On the opposite end, home sellers that are marketing their homes at a price range few buyers are interested in will suffer, too.
Looking at how the number of searches stacks up against the listing availability in a metro can give us a better idea about the market mismatch. By doing so, we found the top 10 most mismatched markets in the country.
So where does Virginia Beach fall? The Virginia Beach-Norfolk metro, which includes the Hamptons and Chesapeake, actually has a much closer matched market, making it easier for both homebuyers and sellers in that area.
Starter homes in the metro, like Virginia Beach condos, are most closely matched. From October to December of 2016, 32.8% of all searches in that metro were devoted to starter homes. At that time, 30.3% of the homes on the market were starter homes, which created 2.5% gap.
Chesapeake homes and other trade up homes in in the metro see a slightly higher gap, compared to starter homes, but it is still far more balanced compared to metros across the country. From October to December, 30.1% of searches 2016 were dedicated to trade up homes and only 25.5% of homes listed falling in the trade up category, which created a 4.7% gap between supply and demand.
If you are looking to buy premium homes, like Hampton real estate, you may have the best luck in this metro. From October to December 2016, 37.1% of searchers were looking for premium homes, and 44.3% of homes listed were premium. While this surplus benefits potential buyers in the area, it can also hinder the seller. An over saturated market can actually drive prices down.
If you aren’t sure where you fall within starter, trade up, or premium homes in the Virginia Beach area, a home affordability calculator allows you to estimate mortgage payments by using your zip code, home price, down payment, interest rate, and loan type.
Article By Katie Bassett