Hope Springs Eternal in Local Real Estate
2020 was undoubtedly an extremely challenging year, and the beginning of the new year comes with a hint of the old year. Uncertainty remains around the length of the pandemic, the continued impact of the economy on lives and livelihoods, and the timing of vaccine distribution.
Yet hope springs eternal. 2021 holds new promise. The end of winter is in sight. The days will grow longer and the temperatures warmer. With spring on the horizon, it is traditionally a time for people thinking of selling and buying homes to start to gear up for what is typically a strong season in the real estate annual cycle.
Now is a good time to think about a fresh start. A home is a place to renew and reset. The real estate market may benefit this year with the rise of millennials (anyone born between 1981 and 1996) as both first-time and move-up buyers, along with Gen Z (anyone born after 1997) entering the market.
If you are a seller, millennials beginning to purchase homes creates a larger pool of potential buyers for your home. If you are a buyer, millennials starting to sell their current homes to move to another neighborhood increases the already tight supply of homes on the market for you to consider. Other potential drivers in this market are interest rates that have fallen to unprecedented lows.
“One of the few silver linings of the pandemic is that it has enabled some potential home buyers to save money to buy a home. Some of those buyers have been particularly interested in moving to a new home with more space to work remotely. Many are craving additional square footage for their children to attend school online,” remarked Dave Wetzel, President and CEO, MLSListings Inc. “Some employers will allow remote work to continue when COVID ends. Many buyers are looking for homes that provide ideal space for long-term remote work. Others are ready to move outside the city for a suburban home as they start to think about starting a family. Many millennials are yearning for features like big backyards for working and playing outside as well as space for decks and gardens. Some have an eye on particular school districts.”
Millennials often start the process by making a wish list, perhaps by browsing home listings on MLSListings.com. They tend to be less interested in extremely large homes, and more interested in affordability as they may be balancing college and graduate school loans. Walkability is high on their list. A location that fits their lifestyle might offer proximity to a coffee shop, hiking trail or large park.
This generation is also known for valuing open floor plans where cooking and entertaining can be done with ease. They value flexibility such as folding glass walls in great rooms that can be hidden to extend the living room outside and offer ease of entertaining. Many millennials are leaving city apartments for a house in the suburbs, putting granite islands, counter seating, laundry rooms, hardwood floors, patios and garage storage at the top of their lists. Even an exercise room with space for a Peloton is often mentioned. Millennials are also known to prefer low maintenance homes which give them more time to explore their new town. This can mean preferences for items like hardwood over carpet or composite decks over traditional wood.
Millennials are also looking to leverage the latest technology to shop for homes and get an insider’s perspective on possible places to call home. They can learn a tremendous amount about neighborhoods and communities online. Many will want to start by taking advantage of shoring up their financing so they can hit the ground running. Live stream, virtual reality, social media and smartphone apps enable them to tour homes in advance of going in person.
With spring right around the corner, you might be looking to buy or sell a home in this part of the Golden State. Your Realtor armed with the latest MLSListings data and cutting-edge technology can be your North Star to help you identify and achieve your real estate goals. After all, it is human nature to seek cause for optimism. The coming change in season in California is the perfect climate for hope to spring eternal.