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Americans now want smaller homes
There is no doubt that the housing market is slowing down, or at least cooling off a great deal.
There is a surplus of homes on the market and a decline of demand for these homes. This cooling market is going to affect just about every sector of the economy, and homeowners are especially feeling the affects.
Many homeowners now want to decrease their housing expenses and move into smaller properties as a result of the slowing market. An increasing amount of people are trading their spacious, sprawling homes for something more quaint and economical.
The August 13, 2006 article by Julie Haviv on Reuters.com, “Homeowners say ‘Downsize me!’” takes a look into the growing market for smaller homes.
“‘Steeply deteriorating.’ ‘Hard landing.’ ‘Kaput.’ These are some of the terms used by analysts to describe the slowing of the U.S. housing market. And with the glory days of home-price appreciation now over, some homeowners are declaring, ‘Downsize Me!’ A huge gap between the supply of homes for sale and demand for housing means prices are leveling off -- and could tumble. David Horwitz and his wife, Diane, are the type of homeowners looking to streamline their expenses and unload their roomy homes for more humble abodes.”
Many people are realizing that the market is probably going to get worse before it gets better, so they should probably try and sell now, and move into a smaller place, before prices depreciate any further.
People like the Horowitzes are downsizing now, and saving a lot of money on basic expenses associated with owning a home. They have saved a tremendous amount on property taxes and other monthly bills by moving from a home in the suburbs to a smaller apartment in the city.
“Diane Ramirez, president of Halstead Property, has seen downsizing pick up steam in recent months, especially among suburbanites in New York, New Jersey and Connecticut. ‘Homeowners are probably sensing now may be the right time to get the best price before the market cools further,’ Ramirez said. ‘Some of these homebuyers are empty-nesters now finding their homes are larger than what they need and more than they can handle.’”
Now, instead of size, many people are more concerned with the amenities in their homes than the square footage.
“‘People are at the point where they would rather have a luxurious interior than expand,’ said Budge Huskey, president and chief operating officer at Coldwell Banker Residential Real Estate in Sarasota, Florida. Potential buyers want kitchens designed for entertaining, state-of-the-art appliances, media rooms and home theaters, he said.”
The current trend of wanting a smaller house seems to be spreading throughout the entire United States, as the size of homes is declining nationally.
“Gopal Ahluwalia, vice president of research at the National Association of Home Builders, a trade group in Washington D.C., said feedback from consumers and builders indicates the average size of a U.S. home is flattening out. The average home size went from 1,500 square feet in 1970 to more than 2,400 square feet in 2005. During the same period, the average household size declined, from 3.11 to 2.59, he said.”