real estate trends

It used to be that people were happy in homes that were single story, from 1100 square feet to 1600 at the largest.  This is the type of home I grew up in.  In fact, when you look at the construction in the Santa Clarita Valley - between 1959 and 1985ish - that was the majority of the home sizes being built.  However, today the builders have found they can offer less land, build a bigger home and get someone that wants to buy it.

Today, in some buyers eyes - Square Footage is everything.  However, it may not have to be.  We were quite happy growing up in our modest home.  Today, our's is bigger than back in the day, but still comfortable. I have been in some 4000+ square foot homes - some just felt uncomfortably big.  I think it depends on the lay out - some are so expansive, it seems like it takes days to walk from the bedrooms to the kitchen.

New homes are getting bigger once again. Apparently Americans’ desire to live more simply and less grandly was short lived. The recession prompted many to examine priorities and when it came to the home many decided that smaller was better. A recent headline “Big Homes Are Back in Business” has some wondering is living more simply was a mere phase or perhaps even an experiment.

Let’s face it, real estate may be on more solid footing but it has hardly rebounded to epic proportions. The recent data that suggests that homes are once again getting bigger could lead us to believe that perhaps real estate is doing better than we think. After all, if home construction figures are showing an increase not just in numbers but in size that certainly says something, doesn’t it?

We are not headed for a world of McMansions but perhaps the fact that homes are being built and that they are being built bigger means that consumer confidence with regards to real estate is indeed making a return. Rates are still hitting historic lows weekly, homes sales are more stable than a year ago, and new home construction is surpassing expectations. Bigger homes are merely the next cog in the wheel to improve, an indicator of improvement.

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