Have you been trying to buy a home but have been struggling to find the perfect option due to higher mortgage rates and home prices? If that’s the case, then there is some good news. As per Ali Wolf, the Chief Economist at Zonda, smaller and more affordable homes are coming your way. Having smaller homes available means that you won’t have to compromise on the quality of your life or give up your dream of homeownership. Keep reading to find out more!
“Buyers should expect that over the next 12 to 24 months there will be a notable increase in the number of entry-level homes available.”
During the pandemic, everyone’s understanding of what a home means changed. People needed more space to live, work, learn, exercise, and more. The ones with a bigger space were lucky enough to keep their homes, while those with smaller homes opted to sell theirs to move to a bigger one that can accommodate their new home needs. This trend made the houses on the market smaller than the ones available before the pandemic. Smaller homes are already here, but what’s more exciting is that this trend is continuing today.
The graph showing the size of homes on the market indicates how the seasonality of home buyers influences the availability of homes. Larger homes tend to come on the market in summer when students are out of school, and families can move without disrupting their children’s education. Since Fall is fast approaching, we can expect smaller, more affordable homes to enter the market throughout the rest of the year.
These coming smaller homes are good news, and it’s timely because of Robert Dietz’s statement that the need for this type of house recently increased. As per the Chief Economist at the National Association of Home Builders (NAHB), the demand for affordable homes has gone up, and with smaller homes’ arrival, this will bring relief to the market. Thus, you can expect a more extensive inventory of smaller homes that are more affordable, which in return will enable many looking to buy a home to make faster decisions with more options.
“. . . as interest rates increased in 2022, and housing affordability worsened, the demand for home size has trended lower.”
This trend bodes well for individuals who have been struggling to buy homes or have been forced to buy homes above their budgets. They can finally have options that will be ideal for their specific household needs as well as affordability. Buyers who seek to enjoy the fruits of home ownership without enduring stressful mortgages can now make faster decisions and secure their dream home in smaller sizes and a more budget-friendly price range.
In conclusion, the housing market is on the verge of a significant change in the coming months with the arrival of smaller, more affordable homes. It can make it easier and faster for many to secure their dream home without compromising their budget or quality of life. As the trend for smaller homes continues, we can expect more of these homes to hit the market in the next few seasons. With this in mind, it’s time for aspiring home buyers to start their search for a more affordable home and secure that dream home without breaking the bank.