February 1st, 2022
There has been a notable shift in the past two years. For our clients, who have achieved tremendous success in their lives, the investment aspect of a home is no longer their top priority. The pandemic has taught us that life is unpredictable, and our quality of life is more important than ever - fueling home buying based on what will add the most enrichment to their life. These are the top five influences on home purchases that we’re seeing right now, and rightfully so.
Your quality of life makes your home far more than just a good investment and should be the biggest priority in considering why you want to move. Your community, the culture, weather, and access to the outdoor space are all key contributing factors in establishing a place that best suits your needs. Trading snow-shoveling for year-round sunny weather, being footsteps away to open outdoor space, and a safe tight-knit community have the potential to make a big difference in your everyday life.
The pandemic has drastically affected what we want in a home. With more people working remotely and kids spending more time learning at home, the parts of our lives that were once separated are now rubbing elbows under the same roof. Bigger home sizes with lofty, open-concept layouts are appealing to those who feel stir-crazy, home offices are no longer optional, and the suburbs are becoming cool again. For good reason, too. Big cities and apartments are less flexible to shifts brought on by the pandemic, and a new home to complement your adapting, evolving lifestyle ensures that day-to-day life is easier, less stressful, and more balanced.
Many parents feel a sense of grief when their children move out of the house, and a nostalgia that echoes through each empty room. Although family homes are filled with great memories, it might be your sign to say goodbye. In starting this next chapter of your life, you’re able to give back some of the time you’ve dedicated to your family over the years - deciding how you want to spend your time in a place that aligns with the lifestyle you want to live.
For some people, moving after the loss of a loved one is necessary to downsize for the sake of their sanity (the house is hard to maintain, feels like a waste of space). For others, it’s the need for a change of scenery to take a step towards healing. Being surrounded by constant reminders and memories of someone who passed away can be incredibly difficult, and purchasing a new house might be the fresh start you’re looking for.
Big cities are starting to lose their appeal. Small living spaces, more crime, and the lack of open space are driving families away from urban communities and into the slower-paced suburbs. Many people now have the option to work remotely, giving them the opportunity to choose where they live versus commute time. Coupled with better school districts, larger property sizes, and safer communities - this may just be the perfect time to move somewhere new.
My brass tax answer to what the market will do next is that mortgage rates are expected to climb throughout the year, which should moderate the price appreciation we’ve seen. I predict inventory will continue to shrink, while new buyers will continue to step into the market to purchase a home before mortgage rates rise further. However, I anticipate lifestyle changes to continue to be the trigger of new listings and sales, not the economy.