An optimistic Clear Capital’s Home Data Index market report argues that 2015 could be a transitional year where full buyer momentum in the low and mid tiers reinforce a strong housing recovery.
“We continue to observe the growing price performance gap between the top and bottom segments of the market,” says Alex Villacorta, vice president of research and analytics at Clear Capital. “The rate of appreciation for top tier homes is stalling, which is a more direct reflection of waning fair market demand. While this is a concerning development, there is a silver lining. The moderating upper tier may give traditional buyers a moment to catch their breath, and entice move-up buyers to enter this segment of the market.
“The ripple effect of opening up inventory all the way down the price spectrum could provide opportunity and motivation across all segments, including first-time buyers, to enter the marketplace. The hope is that strength in the low and mid tiers help restore confidence in a stable housing market, and traditional homebuyers re-engage,” he said. “The next phase of the housing recovery is dependent on healthy demand from this segment.”