Starter Home Buyers Increase, High End Home Buyers Decrease . . . And Prices Remain Constant??

Jennifer Chapman, one of my associates at Coldwell Banker Funkhouser Realtors brought some very interesting data to light yesterday.  She noticed that there are fewer and fewer homes selling over $300k.  I thought I'd take a look . . . .

First, bear in mind that the median sales price has gone largely unchanged between 2006 and 2009, showing only a 3.5% decrease.  (full market report)  This would suggest (in some ways) that we've probably seen a roughly equivalent number of inexpensive and expensive homes selling over the past several years.  This actually does not turn out to be true . . . .



I can make plenty of guesses as to why we're seeing these shifts, including:

• The first time buyer tax credit has likely increased the number offirst time buyers, and thus the number of inexpensive home sales. 
  
• Most upper end home buyers have to sell an existing home before buying.  A slower market has likely slowed down this trading up process, and thus decreasing the number of high end homes.

Do you have other explanations for the shift in what types of buyers are actually buying in Harrisonburg and Rockingham County?  Let me know what your guesses are.  The fascinating part ot me is that despite a 35% increase in sales of inexpensive homes (sub $175k) and a 27% decrease in sales of expensive homes ($300k plus), we still only saw a 3% decrease in median sales price over the past three years!?!