Bigger Homes, Improving Lives: A Quick U-turn on Buyers’ Prerogative due to COVID19
28.8 million cases, 19.5 million recoveries and 921,000 deaths—after the 10 month-long coronavirus proliferation, this is what the statistics showed us as of today. The spread of the virus is indeed a worldwide phenomenon as it changed the world 360 degrees.
Most businesses in 2020 have made their biggest turning point as the COVID cases are increasing day-by-day. In congruence to the World Economic Outlook forecast, global economic growth was projected to be 4.9% this year but was 1.9% below the actual forecast itself. Overall, this would leave 2021 GDP some 6½ percentage points lower than in the pre-COVID-19 projections of January this year.
Meanwhile as public guidelines and protocols are getting strict in accordance with the rapid increase of COVID cases, most employees were forced to shift into a work-from-home setting. This alternative work set-up doesn’t just help the companies protect their employees but makes their jobs convenient and much more accessible as they stay home with their families safe and virus-free.
Impact of the Pandemic to Home Buyers
Last August, sales of larger houses grew ten times faster than small homes. They say that home buyers prefer a large house over a small home if given the choice. Spending more time at home due to the pandemic is encouraging some buyers to seek out bigger houses with bigger yards. Large home sales increased up to 21.2% nationwide for July, compared with 10% for medium sized homes and 2.3% for small homes.
Pending sales for large homes were nearly doubled compared to medium sized homes and small homes showing a 16.1% year-over-year increase. 21% of these buyers also say that the pandemic has caused them to designate a space to work at home which is the focal reason why they want a bigger space rather than the usual. Others also say that they need a huge space for outdoor and recreational activities which can be done at their own yards.
As people want bigger houses and bigger properties, buyers also consider the flexibility of working remotely because they can structure the day how they want it to be. In addition to that, they also say that the commuting nightmare is already gone because of the current set up. In fact, 8 out of 10 employees who work from home say that they want to work remotely for the rest of their careers because they are more productive and they can come to work on time. This is also a reason why they want to invest in bigger homes because they can also utilize it for work purposes.
Single family home owners also found out that this is a good opportunity to capitalize on houses with more room and huge spaces to accommodate all the things that they are doing because of the new normal. While others who lost their jobs due to the crisis, are also taking advantage of low mortgage rates to upgrade into larger and even nicer homes.
Homes of the NEW NORMAL
Our homes are more than just our living spaces. The usage of our homes has now become diverse and is different because of the pandemic. As of now, buyers do not just see a house as a space for our personal routines but we have redefined what being “at home” truly means.
Along with this, multigenerational homes in the US are also in trend since the pandemic started. It is expected that these homes will create a demand for ground-level home suites. Since the pandemic has been tough on families who haven’t been able to visit their loved ones in senior living communities due to strict visitor restrictions, these families choose to stay together in one roof as it would be beneficial for all the family household members. These homes are expected to be more aware of ADA-compliances, like wider bathroom doors, lower positioning of light switches, and dropping down kitchen countertops.
Home buyers are also looking for homes that use a voice technology to control devices and electronics so in such a way, everyone can avoid touching surfaces such as doorknobs and light switches.
Work, Life, Balance
As the community is still adapting to what the new normal is demanding, workers still think that the pandemic is providing a rare opportunity for them to radically rethink the way they work and live. We cannot stay away from the fact that home buyers will always be intelligent and wise people, they want convenient yet conducive spaces for learning, leisure and household chores.
Our home is a vibrant reflection of ourselves. Even though the spread of the virus has made the real estate market experience some unexpected circumstances, it is indeed a good news that all real estate stakeholders have already adjusted and are continuously adaptive. Dealing with work, life and balance are now mostly all done at home as the situations call for change. Nevertheless, the crisis is just a phase and our lives and businesses should always keep going.
“Work is a rubber ball. If you drop it, it will bounce back. The other four balls—family, health, friends, and integrity—are made of glass. If you drop one of these, it will be irrevocably scuffed, nicked, perhaps even shattered.”
Real Estate Entrepreneur
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The blog articles are intended for educational and informational purposes only. Nothing in the content is intended as legal or financial advice.