The start of a new year is often a time of reflection, which over the past 12 months, held a struggling real estate market in my market area. Thankfully, reflection also brings about anticipation and optimism for the year to come. In lieu of our new year approaching, I’ve decided to put together 11 residential real estate predictions for 2011 – released one day at a time. Enjoy!
5) Small Homes Still the Trend in 2011
Starting in 2008, the average size of new homes decreased (and continued to decrease each year thereafter) for the first time in decades. If I’m being real honest with myself…I think that trend is going to continue in 2011. From our cars to our electronics to our homes…the trend is all about going small.
Real Estate market trends actually show why going small will continue this upcoming year for new homes…
- The market in the greater Seattle area is still fueled by first time home buyers who require smaller (more affordable) homes.
- The move towards financially conservative buyers. After the bubble bursting on real estate – and still currently living through the repercussions – buyers are more sensitive than ever to buying within (and often below) their means in case of future economic downturns. This means that living on less (and living with less) is…trendy!
- Home Loan Requirements. Even if it weren’t trendy to live in less expensive housing…it would still be required because many home loans are requiring larger percentages down, and those that don’t often require significantly higher payments…which usually means that these buyers will be looking for smaller price tags…and thus…smaller homes.
- Design. Current designs make such good use of space that a 1400 sq. ft. home built today can feel like a 2000 sq. ft home built in 1950. And let’s face it…a lot of people like brand new homes…so, it will be okay to live with a little less square footage if that square footage is working a little harder with more intelligent layouts.
- Staying with the conservative theme – builders want to mitigate their losses by building cheaper homes, which means smaller homes, which means the trend will likely continue in 2011!
Stay tuned for tomorrow’s prediction!
For help purchasing your next home, or selling the one you’re in…give me a call at (425) 483-1010 or email at Ryan@BoardwalkSeattle.com!
Real Estate Broker | Realtor ®
Boardwalk Real Estate, LLC
Phone: (206) 930-7959 | Email: Ryan@BoardwalkSeattle.com
Providing professional real estate services throughout the Greater Seattle area.
North Seattle | Bothell | Lake Forest Park | Edmonds | Mill Creek