Understanding the real estate market varies per area and per price point. Fortunately for us Realtors® at Compass, our Chief Economist, Selma Hepp gathers the information we need to be better informed and to better help our buyers and sellers. By taking time to read, study and understand the data provided we can help educate our clients and understand the motivating factors for purchases.
In the Silicon Valley, for example, there are some interesting statistics at prices under $2,000,000 and those over $2,000,000
A few of the facts gleaned from questionnaires gathered between 1/1/16 and 12/31/18 include:
Under $2,000,000 Over $2,000,000
Intended use of property by buyer
- Primary residence 85.86% 84.52%
- Investment/rental property 7.58% 4.52%
- Develop Property and flip 2.53% 5.16%
Buyers reason for purchase
- Tired of renting 28.13% 9.92%
- Desired a larger home 13.13% 24.43%
- Desired different location 11.88% 27.48%
- Changed jobs/relocated 6.25% 9.16%
Median sales price by reason for purchase
- Tired of renting $1,175,000 $2,600,000
- Desired a larger home $1,480,000 $3,682,500
- Desired a different location $1,700,000 $3,262,500
- Changed jobs/relocated $1,414,000 $2,774,000
These are just a few of the data points available, and interesting ones I think. Look at the responses given for "reason for purchase" in the two price points--quite a change.
If you would like to receive the charts from which these points were taken, please let me know by 3/1/19 and I will be happy to email them to you.