Priced Out

AAA

DEFINITION of 'Priced Out'

The state of being unable to invest in a particular market or purchase a particular product or service. When someone is priced out of a market, their choices are to simply remain out of the market, to wait for the market to become more affordable, to improve their own financial situation to the point where they can afford to buy, or, if possible, to consider a different market. For example, someone who was priced out of the luxury car market could look at economy cars instead.

INVESTOPEDIA EXPLAINS 'Priced Out'

"Priced out" is commonly used to refer to the real estate market. For example, residents of cities with extremely high average home prices, such as Newport Beach, Calif., would be said to be priced out of the market if they could not afford even an entry-level home. The options available to someone who is priced out of a real estate market would include buying in a different area, waiting for the supply of housing to increase enough to lower housing prices or getting a higher-paying job that would allow them to afford a property.

RELATED TERMS
  1. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  2. Ceiling

    The maximum level permissible in a financial transaction. Ceiling ...
  3. Adjustable-Rate Mortgage - ARM

    A type of mortgage in which the interest rate paid on the outstanding ...
  4. Interest Rate Ceiling

    The maximum interest rate that a financial institution can charge ...
  5. Teaser Rate

    An initial rate on an adjustable-rate mortgage (ARM). This rate ...
  6. Payment Shock

    The risk that a loan's scheduled future periodic payments may ...
Related Articles
  1. Economics

    How Economic Reality Influences The ...

  2. Economics

    The Myth About Market Bubbles

  3. Active Trading Fundamentals

    Forces That Move Stock Prices

  4. What is GNP?
    Economics

    What's the GNP?

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center