The most common usage of “glass ceiling” is in employment terminology and typically refers to the opportunities afforded a minority population which are less relative to the majority. The phenomenon occurs most often in the corporate world and describes a situation where an employee has hit the top of the income earning potential. It is an invisible barrier and yet very real to the parties affected. Breaking through the glass ceiling is a rare occurrence.
The stock market is known to experience the “ceiling phenomenon” as well. The S&P 500 is one of the most commonly followed equity indices, considered by many to be one of the best representations of the U.S. stock market. Recently our financial advisor shared that the S&P 500 Index has on several occasions climbed close to the 3000 mark. It is as if 3000 is a ceiling to break, and yet has not made it over. Alas, “no cigar”.
In real estate, streets, neighborhoods, communities have “glass ceilings” as well. There is a saying that one doesn’t want to own the most expensive house in the neighborhood. Of course there is always a most expensive house, so it is truly an oxymoron. Buyers by nature resist being the one that breaks the “glass ceiling”. There is an invisible shield that collectively no one wants to be the one to overpay. In order for prices to rise over peak, someone has to pay more than the last most expensive home. The market conditions of significant demand over supply are what is necessary to create the environment for a Buyer to succumb to being the first one to break the peak price.
Thus the scenario when the peak price barrier is most easily breached is during a rapidly rising market. This occurs during a Seller’s market when inventory is really low relative to demand. In real estate transactions, this most typically takes place when there are multiple offers and escalations over list price.
How to know where the current market is relative to peak prices? Happy to prepare a free comparative analysis to determine the highest price for the market area and how your home fits into the trends. Please visit our website for more information at: www.HBC RealtyGroup.com.
Karen Briscoe, Lizzy Conroy, Jenny McClintock and the team of agents at HBC Group at Keller Williams would be delighted to assist with your real estate needs, whether selling or buying a home. The group of active and experienced Realtors® in the Northern Virginia, suburban Maryland and Washington, DC marketplace consider it their mission to improve and impact lives. Also available by phone at 703-734-0192.