September 3, 2020 | Market Update

Market News 9-4-2020

Mortgage Market Update

The Home Buyer’s Wish List

In today’s work-from-home environment, many Americans are leaving urban centers and flocking to the suburbs. As they search for their spacious new homes, some interesting “must-haves” are appearing. According to HousingWire, new requirements for home buyers include features such as two home offices when both adult family members are working from home and learning centers for their kids who are completing some level of schooling out of the house. In addition, demand for homes with playrooms and pools is quickly growing. Because of this, larger homes are beginning to become popular again to accommodate for the extra space. Dallas-based agent Alex Trusler says, “I’ve got several clients right now that two offices are absolute requirements, or another area that you can use for a second office.”1

Sales of Large Homes on the Rise

Home buyers stuck at home during the pandemic are looking for more space, triggering an increase in the number of sales of large homes. According to Redfin, sales of large homes (3,000-5,000 sq. ft.) were up 21.2% year over year in July. On the contrary, medium sized home (1,500-3,000 sq. ft.) sales only increased 10% YoY and small home (300-1,500 sq. ft.) sales increased 2.3% YoY. The average home size that sold in the 4 weeks ending August 16 was 1,772 sq. feet – 3.7% larger than the average home last year. “Most people would prefer a large home over a small home given the choice,” said Redfin chief economist Daryl Fairweather. “That’s true regardless of what’s happening in the world, although spending more time at home due to the pandemic is encouraging some homebuyers to seek out bigger houses with bigger yards.”3

Sources: 1HousingWire, 3HousingWire