Price matters in the 'rebound'

Nationwide, properties under $250,000 have been selling well, but the picture above that price point is still not very pretty. In our Portland real estate market, properties under $300k are competitively sought out by buyers, especially first time buyers who are taking advantage of the current $8,000 tax credit. Lots of Portland short sales and foreclosures have encouraged people to find great deals below market value, but overall there are only so many buyers for mid-priced to luxury homes at this time. If you have bought in the last five years and want to upgrade, chances are there is little or no equity in your home, and that makes it very difficult for most people. So consequently the middle of the market is slow because upgrading is a challenge for those buyers. Financing luxury homes, the expensive top 10% of those listed, is very difficult and the buyers are few. Buyers expect deep discounts right now on these high end properties, so unless you are willing to sell it at a reduced price or your Portland home is unique, it may not sell in a reasonable amount of time.

http://money.cnn.com/magazines/moneymag/moneymag_archive/2009/10/01/105855726/index.htm?postversion=2009092410