Residential Market Commentary - Signs of a strong market amid economic confusion
Fast moving, ever changing and, often, contradictory information is making it hard to predict what’s coming for the economy. But, a couple of recent reports may be offering some hints about where residential real estate and mortgages are heading.
A recent survey by the brokerage Properly seems to reinforce current notions that people – particularly millennials – are looking for more space both inside and outside their homes, as a result of being cooped-up by the COVID-19 pandemic and the desire to maintain the option to work from home.
According to the Properly survey more than half of millennials are unhappy with their current homes. Their preferences have shifted towards:
- detached housing, 45% - ample square footage, 44%
- better home offices, 28% - backyard space, 57%
- proximity to green space, 34%
Of the millennials who expressed a desire for a new residence, about 8% said that they have firm plans to buy next year. That is double the 4% indicated by the rest of the population in the survey.
This report dovetails with a recent survey of real estate brokers by Re/Max. It suggests move-up and move-over buyers are seen as the big sales drivers over the next year. Forty-five percent of brokers expect buyers “moving up” to bigger homes and properties will be a key market force. Thirty-five believe buyers “moving over” from other cities will drive the market.
Both reports suggest that price pressure, resulting from low inventories, will continue to be the biggest consideration in buying or moving (over or up). But ongoing low interest rates will continue to be a mitigating factor.