What is a Stratified Market?

So, this is not likely a market type you are super familiar with because, quite honestly, it really doesn't happen all that often in general, but it's even more rare in the state of Texas.

Let's first look at what the actual work "stratify" means in case that's an unfamiliar term altogether. I find that understanding the root word is a really good way for me to learn, so I'll just pass this strategy down :)

Stratify: 1: to form, deposit, or arrange in strata 2a: to divide or arrange into classes, castes, or social strata

b: to divide into a series of graded statuses

So, it essentially means there are layers or a division of sorts that have different characteristics.

In a stratified market, when you divide the different property values, like say from $200-350,000 and then $350-700,000 and then higher, you would see different trends in each market. Meaning you see a difference in the supply and demand in different price points.

For example, in the $200-350,000 you may see a sellers market (the houses are flying off the shelves like hot cakes because there are more buyers than sellers) and then in the %350-700,000 you may see the opposite, a buyers market (where the buyers have their pick of the litter and get the terms they want because there are more sellers than buyers) and then when you look at the higher price points you might actually see a balanced market (where there are just enough houses for the number of qualified buyers).

In Texas we have a very healthy & strong economy, so we rarely see the major fluctuations that some states like California, New York and Florida have in the differing markets. These states all have major markets for international investors that buy very expensive real estate in order to have their money in the United States. Texas has some of that In Austin and even a bit in Dallas, but we just do not have the tropical pull that Cali or Florida has and we do not have a massive business mecca like New York City.