Navigating the Contrasting Housing Markets: Rising Prices, Declining Demand

The housing market in the United States is experiencing a divergence, with higher-end homes seeing price declines while starter homes remain relatively unaffected. This trend is driven by the increasing unaffordability of higher-priced homes, leading buyers to focus on smaller and lower-priced properties. Move-up buyers are also choosing to stay in their current homes, reducing demand in the upper price tier and decreasing supply in the lower price tier. Lower-priced homes have consistently outperformed higher-end homes, with many markets setting all-time highs for affordable housing options. This shift has also led to investors redirecting their focus to more affordable markets.