Has anyone else noticed that homes only seem overpriced in the average price ranges?

I live in a high cost of living state, and after much research and home searching, I’ve come to the conclusion that the vast majority of homes in the $400,000 to $600,000 range are your cookie cutter, basic looking homes built 60 to 100 years ago that need tons of updates. Whereas if you get into the $1 to $3 million range, homes seem exponentially better. Down in the lower ranges where the masses purchase is where you seem to overpay for old beater homes. Once you get past what is affordable to the masses, there’s essentially no competition and prices seem to match what you’re actually getting.

It’s because average folks are stuck competing for the same limited inventory while the luxury market’s just vibing. Supply and demand hitting different in each bracket.

Yeah. Things are hyper inflated in the midrange. It would be a great opportunity for developers except costs for them are still really high.

It’s because the land is worth more than the buildings.

That’s the starter home price point in your area. You’ll see stiffer competition for them. So the sellers are banking on that and trying to squeeze every penny out of that.

It’s a tale as old as time. Lower/mid-priced homes are affordable by everyone. They are in demand from people moving toward ownership from rental and people upgrading from mobile/manufactured homes. The market for expensive homes shows a much narrower demand arc.

So the homes with most demand had the greatest rise in appreciation? Hmm, might be the law of supply and demand.

Prices are relative. Cookie cutter, basic looking houses in my area are $1 million plus already. But yes, in general entry level prices have inflated the most over the past few years.

In a lot of cities those 50-year-old cookie cutters are in much more sought after locations. Take Dallas for example: there are tons of nothing special ranch style homes worth significantly more simply because of location.

No, even the $1 to $1.5 million range are overpriced. I’ve toured quite a few and left thinking that’s not what I’d expect I’d get for a million.

What do you expect when the vast majority of people purchasing are middle working class families and the investors know that and are happy to buy up those low maintenance entry level family homes.

Talked to my wife about this. We either pay $800 to $900 for an average house that was built 50 years ago with cheap renovations, or $1 to $1.3 million for a brand new gigantic house. Might as well save and go for $1 million plus.

Even worse are the really cheap ‘affordable’ homes. In my area, I’m looking at a 150% increase in the past 5 to 10 years for the cheapest homes.

Like eggs. Fancy cage free ethical eggs are more or less still the same price.

If you pay 50% more you get a better house. More news at 11.

Yes, that is likely the case, but remember those $1 to $2 million homes were your $600k homes not that long ago.

No way!! My parents’ $3 million house is exponentially better than my $600k house. As a side note, I bought one of those basic looking homes and updated it to a really beautiful home and I’m super happy.

They’re not overpriced though, as evidenced by the competition, which solid upwards pressure on price. If anything, they’re underpriced.

Yeah that’s how it is around me. You have a choice between an old house or new construction, nothing in between.

I would not consider having any single family home even available for $400k to $600k. My area, the starters are $800k.