Flying (& Mountain Climbing) Metaphors
Pilots in turbulent weather will frequently announce to 
their passengers that they’re “climbing to 40,000 feet” or “descending to 30,000 feet” in search of a smoother ride.
As a Buyer’s agent, I will point out to clients if moving up (or down) a rung in price makes sense (cents?).
That can be the case when nothing is for sale at, say, $500k — but there’s lots at $650k.
Since Buyers at this price point will typically look at homes within a $100k range, moving $150k upmarket can also leave behind lots of would-be competitors.
Think of it as reaching thinner, less accessible air (to switch to mountain climbing metaphors).
Exploiting Supply and Demand
With interest rates dirt-cheap, home buyers with good credit and financial flexibility are making exactly those kinds of choices in today’s housing market.
Of course, moving down market can also make sense.
Home prices are now cheap enough that many Buyers are pleasantly surprised to find out that — combined with low interest rates — they can get what they want at a lower monthly payment.
So, why not save the money?
Either way, the goal is to maximize what you get in the market, which in turn requires being savvy about housing supply and demand.
See also, “Realtor Job Description.”
P.S.: The converse of this applies, kind of, to home sellers.
Namely, if you’ve got lots of close competitors amassing market time at $499k — better try listing at $484,900 or even $474,900.
