Real Estate Trends
The pandemic has, of course, influenced the real estate market, and some of the ways are perhaps not what one would necessarily surmise. In our area and across the nation, we are seeing a very strong real estate market overall. There continues to be a lot of buyer demand and interest rates remain at record lows. But readers may find that what influences buyers these days is intriguing. Let’s look at a few of the current trends.
The Move to Suburbia
News.com recently released a report which showed year-over-year percentage increases in views per property type:
- Urban – 7%
- Suburban – 13%
- Rural 16%
The data shows that buyers are viewing more properties in suburban and rural areas than in cities. Javier Vivas, Director of Economic Research for realtor.com, gives these statistics some context:
“This migration to the suburbs in not a new trend, but It has become more pronounced. After several months of shelter-in-place orders, the desire to have more space and the potential for more people to work remotely are likely two of the factors contributing to the popularity of the burbs.”
Realtor Magazine reported:
“Nearly 30% of respondents living in a high-density urban area say that the pandemic is prompting them to want to move by the end of the year…This is more than double the rate of those living in rural parts of the country, where residents are much more likely to stay put rather than to relocate.”
People are leaving densely populated areas in favor of suburbs and rural areas.
Changing Floor Plans
Another trend, largely influenced by the pandemic, is the shifting designs in floor plans. As people spend more time at home, they are realizing which features of their homes are working and not working. Many are choosing more overall privacy, with doors and walls, vs open floor plans. According to a recent press release by Zillow, new construction, which offers buyers the opportunity to customize home features, saw its listing page views grow by 73% over last May!
Luxury Second-Homes on the Rise
The pandemic is even impacting the luxury second-home market. In a recent article titled “Luxury Buyers Return to Market in Force,” author Danielle Hale, Chief Economist for realtor.com reported:
“Stay at home orders and social distancing have put a new value on the extra space. We’re seeing this in the luxury market as well, which could mean there is renewed interest from high end buyers to find a second home that is within driving distance from their primary residence. Much like the suburbs are gaining favor with home shoppers, second home markets are seeing increased interest from luxury buyers.”
While folks continue to stay home more than usual, those who can afford the option are often opting for a second space to call “home.”
While not everyone can afford a second home, many are rethinking their primary space and seeking options that work for their family and their situation, be it a remodel, reconfiguring how they use rooms, or even purchasing a new home with a different layout. No matter where you fall on the continuum, one might argue that the space we call “home” has never been as important as it is now!
Debbie Austin is a realtor associate with Keller Williams, Roseville and has been helping clients buy and sell property in the area for 16 years. If you have a specific real estate question you wish to see addressed, contact Debbie at debbieaustin@kw.com or debbieaustingroup.com.
