Price bands and Buyer markets

Price bands and Buyer markets

A common way to view real estate is by geographical markets. A less common but equally important way to view markets is by price band. Most every market can be broken up into 4 submarkets. We refer to them as Entry, Core, High End, and Luxury. 

It's important to know what your price submarkets are because those markets can vary wildly in their behavior, and thus your client's experiences can be vastly different depending on which market they fall into.  Look at the Absorption Rate chart below.  There is less than one month's supply of available homes in the $100-100K price range, while there are over 4 months supply in the >$1MM price range. That's different messaging that you as the agent need to communicate to your clients.