August 28, 2020
2 MINUTE READ
Another week has gone by (we think?), and with it, another seven days of headlines has blurred right past. It can be tough to track it all, but we’ll do our best.
The lede this week is all about the need for space, and all the things we do in that space to keep ourselves…uhm…entertained. Here’s the skinny:
What’s this all about?
Everyone’s amazed at how fast the world has changed in the last six months, so we started reading up on changes following the 1918 flu for hints of what’s to come in 2020. One example: a baby boom? A looming booming!
What it means
Babies, home offices, in-home gym — as discarded mattresses begin to litter curbs everywhere, we’ve begun to see the death of the “guest bedroom” and the demand for more space rise. The problem? Very little inventory. The solution? Build Baby Build!
What’s the big deal?
Because newly constructed homes are quite hot at the moment, it’s easier for builders to raise prices. The nationwide median price of a newly built home sold in July was $330,600, an increase of 7.2% over last year.
(Reali Tip: New home builders aren’t super keen on accepting offers contingent upon the sale of a buyer’s existing home. But we still love you. Check out Reali Trade-In.)
To put it mildly, the economy is all over the place, but true to California form, home prices are popping like your collar did back in the 2000s.
What it means
While California’s price brackets rose across the board last month, high-end properties gained the greatest momentum, comprising over 20% of home sales. Homes priced over $3M saw a 115.6% spike in pending sales, as the luxury market is regaining prominence in California despite the global pandemic. Sigh.
And the rest of us?
All is not lost! As with any market realignment, opportunities and silver linings abound. Families buying new homes leave their previous ones behind, so the savvy consumer will adjust to the new landscape, roll with the punches, and maybe, just maybe, leverage these emerging market realities to their advantage.
And of course, Reali can help!