2019 Home Buying Trends

Purchasing a home is one of the most important decisions a person can make. While location remains the top deciding factor when searching for a home, it’s the home’s unique features that convert shoppers into buyers.

Size

Ten years ago, everything in planning was larger homes. That trend has now reversed and today there is more focus on developing affordable options for middle-income homebuyers. According to data from the National Association of Home Builders (NAHB), the average new home size fell in 2018 for the third straight year.  Homebuyers today are choosing paired homes/duplexes, courtyard apartments, bungalow courts, and multiplexes over larger, more expensive homes.

Open Floor Plan

Open floor plans have been in high demand for quite some time. By removing walls, homeowners can communicate freely with friends and family in areas that might have otherwise been closed off. An open concept design adds to the functional square footage of a home, making it the ideal choice for smaller spaces.

Flexible Living Space

As needs change and families grow, flexible living space becomes more important. Homeowners today want a space they can repurpose later.

Energy Efficiency

Everyone wants to save money. This might be part of the reason why homebuyers find energy efficient features so appealing. Whether its Energy-Star-rated windows, or low-flow toilets, Zillow’s recent Housing Trend Report found that nearly half of all homebuyers find energy efficiency desirable.

Storage

No one likes to see clutter. Homebuyers today are making sure they have enough room to stash their belongings. In addition to closets, homebuyers want storage space in the laundry room and garage as well. We are seeing more builders find a way to utilize the space under the stairs for more storage too!

Smart Home Features

As technology becomes more prevalent in everything we do, homebuyers want more smart features in their home. This is especially true for younger buyers who expect lighting, temperature, and security system smartphone control.

Kitchen Islands

A kitchen island adds surface area and storage while creating a space for family and friends to gather. Kitchen islands work well in every kitchen, even smaller spaces. While it might not be possible to fit a larger island with seating in a small kitchen, a smaller island provides the perfect space to prep and stage food when entertaining.

Amenities

Prospective buyers are looking for amenities that promote recreation and socialization. Top choices include Wifi-friendly lounges and public spaces, community pools, community gardens, hiking trails, and gyms.

Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify trends in what buyers want and how our clients can deliver homes to today’s potential buyers. Please contact us for more information about our services.

 

Making Sense of Conflicting California Housing Market Predictions

There’s a lot of conflicting information regarding the current state of the housing market in California. While some believe that trouble is on the horizon, research suggests that home sales around the state are about to pick up.

Over the past year, we’ve all heard talk of possible housing market crashes and recessions. However, a crash has not occurred and with interest rates hovering around 4%, homes continue to sell in California. Increasing wages throughout the state and seller’s willing to negotiate may also be a contributing factor. However, many potential buyers are still waiting for home prices to drop.

Lack of available housing and the growing population continues to drive home prices up throughout much of California. Whil e new construction of multi-family units has picked-up in several cities, there is still some opposition from neighboring residents which will slow development.

Millennial Home Buyers Increase as Baby Boomers Sell

According to a 2016 Pew Research Center survey, 72% of all renters say they would like to own a home one day. Unfortunately, some millennials – those born between the early 1980s and early 2000s – face an exorbitant amount of student debt. A large portion of this generation also entered the workforce in the shadow of the Great Recession. Despite these challenges, we’re seeing an increasing number of millennials buying as baby boomers sell, many times they will forgo an expensive wedding for a down payment or use GoFundMe for their down payments.

Encouraged by this increase, mortgage lenders are beginning to experiment with new ways to streamline the application process and verify creditworthiness. For example, the new FICO system will enable potential buyers with lower credit scores to improve their score by responsibly managing their checking and savings accounts. These new practices, combined with stabilized interest rates, provide the perfect opportunity for millennials to make the switch from renting to owning.

Quality of Traffic Improves in California

While less people are out looking, those that are out are serious buyers. Homes are selling in California despite the fact that traffic numbers have dropped, in some communities we are experiencing less than 9:1 traffic to sale conversion. The buyers are not interested in fixer uppers either; they’re buying new construction homes worth upwards of $1 million. This is extremely good news for sellers in California. Renters waiting for home prices to drop might change their mind if presented with the right opportunity. This is why knowing the front line experience along with specific market research is so important.  Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understand the steps required to identify and connect with potential buyers. Please contact us for more information about how we can help your community outperform the market.