(Feel free to completely disregard what follows as it is based entirely on viewing houses with either clients or on recent open houses and there’s been no review of actual statistics)
I sense that the $2-$2.5 million range is now, for the most part, offering reasonably-priced houses in comparison to the $4 and up range. The few houses in that upper range that do seem to offer value have usually been reduced from the mid-to-high fives, while those that started in the $4s and have stayed there feel, to me, more like they belong in the $3s or even lower.
If the unwisely-priced $4 houses do drop down it will presumably squeeze the existing $3s and they, in turn, may eventually make the current $2.5 inventory look overpriced. As of now I haven’t seen that happening on a wide scale so the $2s continue to look good.