In comparison, low-tier homes — those selling for less than $120,000 — are closest to 2006 peak levels, only off by 10.1 percent. Top-tier homes — those selling for more than $345,000 — trail 2006 peak levels by 14.2 percent.
This vast difference in market recovery underscores the continued challenges the majority of homeowners face, despite a quicker recovery in both the bottom and top segments of the market, according to Alex Villacorta, vice president of research and analytics at Clear Capital.
The mid tier’s performance is concerning because it represents the key move-up buyer segment of the market, Villacorta notes, adding that as long as this segment is still fighting to regain an equity foothold, those homeowners will find it difficult to re-engage in the purchase market.