Showings are still 17.0% ahead of last year at this time, but following the same downward trajectory as the temperatures. New listings, which feed showings and pending listings, are also down. Coming Soon listings are up slightly after a drop last week, which could help in coming weeks.
The National Association of Realtors reported that a recent survey by Sears Home Services reported that 44% of owners are dissatisfied with their homes since the pandemic, indicating a sense of feeling ‘trapped’ when they must remain inside. In fact, 77% of respondents admitted to telling a lie in order to just get alone time at home.
I see evidence this is playing a role in the surge in the housing market, especially in families where mom and dad are working from home and children are also at home.
The home of a couple I am working with just pended this week, as they moved to a home about twice the size to give everyone the space they craved for work and school, plus room to move around… and actually have space for some alone time.
This can be good news for sellers of large homes, which have not been in high demand in recent years as people were learning to live in smaller spaces. The two features most desired in the survey were home gyms and home offices, followed by gaming space and kitchen space.
from our blog at Keeping Current Matters
A year ago, additional space and extra amenities had a very different feel for homebuyers. Today, the health crisis has brought to light how valuable more square footage and carefully designed floorplans can be. Home offices, multi-purpose rooms, gyms, and theaters are becoming more popular, and some families are finding the space they need for these upgrades in the luxury market.
The Institute for Luxury Home Marketing (ILHM) explains:
“With quarantine concerns still top of mind for many luxury buyers, we see large, sprawling estates making their comeback.
For instance, the last six months have seen a resurgence in the buying of mega mansions and estate-size homes – specifically properties that offer space (both inside and outside), separate home offices, gyms, and private amenities such as swimming pools, yoga studios, and recreation rooms.”
This was not the case at this time last year, as the most recent Luxury Market Report from ILHM emphasizes:
“Exactly one year ago, we reported that demand for large properties, mega mansions, private estates, and luxury ranches had reduced significantly over the previous few years; especially from the younger generation of luxury property buyers.”
For today’s buyers looking for larger homes, steady increases in equity might be what makes a move possible. Leveraging home equity makes it easier to afford the down payment on a luxury home, and current low interest rates are making mortgage payments more affordable than they have been in years. The report from ILHM also notes:
“Luxury real estate prices may continue to strengthen further into the third quarter, as the affluent continue to see large investment returns from the currently strong stock market.
Coupled with the low interest rates, the policies granting (and insisting) on working from home implemented by many employers, and the concerns of the pandemic, all translate to the affluent increasingly trading in their city lifestyle for a home that has it all.”
Clearly, today’s strong gains in home equity paired with record-low interest rates make fall a great time to move up into the luxury market to meet those changing needs.
Bottom Line
If you’re ready to gain some breathing room in a larger home, let’s connect so you have the guidance you need to find more space in the luxury home market.
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
