I just read an article in USA Today, that reads home buyers are trending towards smaller homes. That's just great! After I just increased the size of my home by a couple of thousand feet!According to the National Association of Home Builders, the average size of a new single family home went from 1750 square feet in 1978 to 2479' in 2007. That trend however, is starting to reverse itself. Census data shows that new homes started in the 3rd quarter of 2008 averaged 2438 square feet, down from 2629 square feet in the 2nd quarter of the 08' There have been slight dips before the article goes on to say, but this latest dip was much steeper and is likely to hold even after the economy bounces back.
The reasons for this trend are pretty clear:
1:The economy is the big factor. When a two income family experiences a job loss they're forced to downsize or look at a smaller new home than originally planned.
2:Tighter credit has made it more difficult to get the so called Jumbo loans for the McMansions. A buyer who may have qualified for a year or two ago for a large mortgage is out of luck now.
3:Larger homes are more expensive to maintain. Home values may be falling, but anyone that has opened their gas or electric bill lately can quickly see the utility costs aren't following suit.
4:And the days of a big home being a status symbol are long gone. Just like the big gas-guzzling SUV's they're considered wasteful and enviromentally unfriendly-you know the whole carbon footprint debate. Thanks Al Gore!
Well, I don't know if I totally buy into these findings. To be sure, I think some new home buyers and existing home buyers are probably trending towards smaller homes, but there's still the desire to have the biggest and best house in the neighborhood. They're still status driven people out there-Thank God.
So, don't write the big homes off just yet. Not until I unload mine first. that is!
If you have any questions regarding the purchase or the sale of a home in the Ann Arbor area please contact Steve Wickland at the Wickland Group. My experienced team of real estate professionals are ready to help you with all of your real estate needs in Ann Arbor and throughout Washtenaw county. Expect only the best service and customer support from my team, taking all of the stress out of your real estate experience
By Steve Wickland
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