Latest Real Estate Trends – Suburbs, Downsizing, Short Sales and More

Ah, how the times change. Cities used to be the hot spot for singles. The tides are turning and for good reason. Inman News reported on a few real estate trends that we are noticing more in Orange County.1. Singles are moving to the suburbs. Why? The number one reason is money. In many cases people can buy a home outside the city limits for about the same cost as they would spend renting in the city - sometimes even less! Also, many buyers found that they were able to gain more space in the suburbs. Finally, many singles were excited to take advantage of the tax credit and did not want to miss the opportunity it presented. (An interesting sidenote - with the popularity of Facebook and online "communities" some firms believe that it makes sense that homebuyers want to be part of communities like the ones that exist in suburbs!)2. More and more homeowners are downsizing. Statistics are showing that more people are buying smaller homes than they can afford. According to the National Association of Homebuilders there are several reasons for this. For instance, homeowners are more concerned about energy costs so having a smaller home helps to limit those costs. Also, due to the decline in home prices recently some transitional homebuyers have had less equity to parlay into a larger home. Another valid point is that there has been a rise in the amount of first time homebuyers due to recent tax incentives and first time homebuyers typically buy smaller homes.3. With real estate prices at a low, many homebuyers are keen to get a good deal. Short sales and foreclosures can often present great opportunities for buyers to get a good deal. The NAHB report found that 38 percent of males and 29 percent of women polled said they would consider a foreclosure property or short sale property.