The strength of the economy and relatively low interest rates, however, have continued to accelerate the pace of home resales. Even with the Fed's November interest rate hike, and the increase in the prime rate that immediately followed, mortgage interest rates remain attractive, Burns said. Move-up buyers generally are looking for better school systems, larger homes and nicer property. They expect more features and open spaces, like a great room instead of a home that is broken up and compartmentalized. They are looking for a bigger master suite and volume ceilings.
People moving up want a home with a more affluent, more impressive look.
Some of the homes that meet these needs go on and off the market in a day. Her brokerage recently sold a three-bedroom ranch that had been damaged by fire. There were four buyers bidding on the new home before the old one was knocked down. The kitchen and baths may need to be updated. They should expect to get a one-car garage instead of one for two cars.