The State of the Housing Market N AT I O N A L U P D AT E
FIVE WAYS COVID-19 HAS CHANGED HOMEBUYERS’ PRIORITIES If you were to poll homebuyers two years ago about what they were looking for in their next home, some of the top answers might have been proximity to top restaurants and nightlife, a close commute to work, and material upgrades like sleek stainlesssteel appliances and marble countertops. Ask that same question today, more than one year into a global pandemic that has upended the way we all live and work, and you’re bound to get a set of different answers. Here’s a quick look at how homebuyers’ priorities have changed since COVID-19.
1. DEDICATED HOME OFFICES ARE NOT JUST A LUXURY Telecommuting is a practice that has been on the rise for years, but with most industries pivoting to a work-from-home model due to COVID-19 restrictions, it’s likely to become more of a permanent fixture in the future. Many of the businesses who made this shift recognized that after working through a few early kinks, having a fully remote staff was a viable option because it enabled the business to remain effective despite the physical distance. As employees, we quickly learned that makeshift offices on the kitchen table weren’t good long-term solutions and that a dedicated office with proper space and amenities was needed. That’s something home shoppers won’t forget as they search for their next place, eliminating options that lack that extra bedroom or den that can double as a home office. 2. PRIVACY IS PARAMOUNT We all need a little time to ourselves, and that’s something that COVID-19 made very clear. Between telecommuting, kids homeschooling and working out at home (more on that later), our houses have never felt more lived in. Knowing that home sweet home has turned into Grand Central Station, new homebuyers
will be looking for ways to make things a little more private for all parties. This could be anything from separate bedrooms for kids who were once sharing to large master bathrooms outfitted with a soaking tub—and a door that locks. 3. GREENSPACES ARE GOOD FOR THE SOUL We don’t often realize how badly we want something until we can’t have it, which is why it took a lockdown for us to remember how much we love simply being outside. Tree-clad yards once thought to be bothersome are now rightfully viewed as respites with potential homeowners looking for greenspaces where they can spend their time safely outdoors. Outdoor entertaining and dining spaces are getting updates, with grills, smokers and fire pits becoming more popular as gathering areas. In addition, homebuyers want a yard where their pets—a popular pandemic purchase—can play and stretch their legs. 4. ENERGY EFFICIENCY IS MORE IMPORTANT THAN EVER In complying with shelter-in-place orders, most of us learned very early in the pandemic that staying home had some consequences we weren’t expecting. Not only did grocery bills soar as a result of restaurants closing, but so did utility bills since spending more time at home meant more consumption of electricity, water, and gas. Those seeking out their next home may be more inclined to focus on energy efficiency, specifically looking for ways to reduce their own carbon footprint to both help the environment and their wallets. 5. GET FIT WITHOUT GOING OUT Unfortunately, many of us dealt with the stress of the pandemic by turning to food. With the gyms closed for months, the result was weight gain that left us feeling unhealthy and sluggish. Even as the gyms opened up, some people still didn’t feel comfortable working out so close to others. That’s why many new homebuyers will be prioritizing a home gym in their next place. Even if it’s just a spot to keep a treadmill or exercise bike and a few dumbbells, having somewhere reserved for fitness will be essential for many homebuyers moving forward. All homebuyers have their own preferences, but based on what our buyers are telling us, these are some of the top themes rising to the top. Connect with me to begin your dream, vacation, or investment home search! Source: FloridaNetworkRealty.com/Blog
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EXPERTS SAY HOME PRICES WILL CONTINUE TO APPRECIATE It’s clear that consumers are concerned about how quickly home values are rising. Many people fear the speed of appreciation may lead to a crash in prices later this year. In fact, Google reports that the search for “When is the housing market going to crash?” has actually spiked 2450% from April to May 2021. In addition, Jim Dalrymple II of Inman News notes: “One of the most noteworthy things that came up in Inman’s conversations with agents was that every single one said they’ve had conversations with clients about whether or not the market is heading into a bubble.” To alleviate some of these concerns, let’s look at what several financial analysts are saying about the current residential real estate market. Back in April, four of the major financial services giants came to the same conclusion: The housing market is strong, and price appreciation will continue. Here are their statements on the issue: Goldman Sachs’ Research Note on Housing: “Strong demand for housing looks sustainable. Even before the pandemic, demographic tailwinds and historically low mortgage rates had pushed demand to high levels. … consumer surveys indicate that household buying intentions are now the highest in 20 years. … As a result, the model projects doubledigit price gains both this year and next.” Joe Seydl, Senior Markets Economist, J.P.Morgan: “Homebuyers—interest rates are still historically low, though they are inching up. Housing prices have spiked during the last six-to-nine months, but we don’t expect them to fall soon, and we believe they are more likely to keep rising. If you are looking to purchase a new home, conditions now may be better than 12 months hence.”
Morgan Stanley, Thoughts on the Market Podcast: “Unlike 15 years ago, the euphoria in today’s home prices comes down to the simple logic of supply and demand. And we at Morgan Stanley conclude that this time the sector is on a sustainably, sturdy foundation . . . . This robust demand and highly challenged supply, along with tight mortgage lending standards, may continue to bode well for home prices. Higher interest rates and post pandemic moves could likely slow the pace of appreciation, but the upward trajectory remains very much on course.” Merrill Lynch’s Capital Market Outlook: “There are reasons to believe that this is likely to be an unusually long and strong housing expansion. Demand is very strong because the biggest demographic cohort in history is moving through the household-formation and peak home-buying stages of its life cycle. Coronavirus-related preference changes have also sharply boosted home buying demand. At the same time, supply is unusually tight, with available homes for sale at record-low levels. Double-digit price gains are rationing the supply.” BOTTOM LINE: If you are considering a purchase or sale right now, let’s connect to discuss what’s happening in our local market.
Source: Keeping Current Matters
When It Comes To Selling a House,
YOUR TIME IS MONEY
Source: Keeping Current Matters
SOME HIGHLIGHTS • Selling a house is no small task. If you decide to try to do it on your own, keep in mind you’ll be responsible for all the expert-level work of a real estate professional. • The vital tasks an agent manages for you include listing and marketing your house, handling legal documentation, negotiating with all parties, and navigating local laws and regulations. • If you’re ready to sell while the market is in your favor, let’s connect to make sure you have the professional expertise you need every step of the way.
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