Why Montgomery Home Owners Should Move Up in This Down Market
Many Montgomery home owners have delayed moving into larger, more luxurious quarters because they "are waiting for the market to come back." Is this a wise strategy?
I decided to have a look at the numbers, and the answer is a resounding NO! Here's why:
The typical "family home" (2000-2500 sq ft) in the Montgomery area has declined in price about 10% in the past two years. But the luxury home (3500 sq ft plus) is down in value 18%. In dollars, it would look like this:
|
Typical Montgomery area family home |
Montgomery area luxury home |
| Value 2007: $298,999 | Value 2007: $461,295 |
| Value 2009: $266,939 | Value 2007: $461,295 |
| Loss on sale: $ 32,060 | Saved on purchase: $ 82,405 |
Would you give up $32,060 to get $82,405? I sure would!
And while they're considering that move up, I'd also encourage buyers to give serious thought to making their move to Midtown. Luxury homes in Midtown are down in value only 7%, not the 18% decline across the entire market. Since 2005, Midtown luxury homes have held their value far better those in other areas. As a result, a Midtown luxury home today costs just about the same as the market average.
So just think: Folks can live in Midtown, come home to lunch, walk to shopping and entertainment in many neighborhoods AND anticipate that the value of their homes will hold up even better than elsewhere.
