If you’ve been following developments in the housing market over the past year, you’ve likely seen homes selling for amounts significantly more than the asking price, and buyers waiving the right to inspect properties in order to beat other buyers to the offer table.
HomeLight reports in their Top Agent Insights for End of Year 2021 report that 76% of agents say that homes in their area are still getting multiple offers, however the properties are getting fewer bids, frequently because buyers are exhausted from bidding wars and choosing to stay on the sidelines. 32% of agents also report that buyers are pushing back on inspection items and are paying more attention to how a home’s condition relates to the asking price.
While the housing market has slightly slowed down, homebuyers still have plenty of wealth from pandemic spending savings (cash stashed aside from not spending money on dining out, travel, concerts, and more), a sizzling stock market, and even support from relatives and generational wealth.
With those points in mind, here’s a handful of notable trends in today’s housing market.
In-law units see significant value increases
With the pandemic causing many to be concerned with safety of nursing home accommodations, and just a general desire to help avoid loneliness and stay connected, multi-generational housing has risen to a high of 15% of total purchases in 2020. This trend has caused many existing homeowners to construct accessory dwelling units (ADUs) which frequently take the form of attic apartments, backyard guest homes, or interior conversions that turn a space into comfortable living quarters.
While ADUs on average add about $65,908 to the value of a home, the average cost to construct one is about $77,239, meaning the average ROI of an ADU is -15%. Still, ADUs are extremely practical, and they are beneficial for when you’re living in your home and they also help your home sell faster.
Recreation opportunities become a priority for homebuyers
Since the start of the coronavirus pandemic many individuals and families have taken up outdoor activities such as golf due to shelter in place orders and concerns over being indoors. In fact, since March 2020 the value of homes within a golf course have increased 48% annually from $16,174 to $24,002.
While country clubs have long been of interest to more mature adults, agents are reporting that they’ve seen an interest from younger individuals to locate near a golf course or within a golf community.
In addition to spending time on the golf course, many homebuyers are looking for properties with backyards built for social experiences. One of the ways homeowners have enhanced their backyards is by installing an outdoor fireplace.
Agents are fairly split on which type of fireplace helps get a home sold quickly. 48% of agents report gas fireplaces add the most value while 44% report wood burning fireplaces tend to perform better.
While knowing the general trends across the US is beneficial, if you’re thinking of selling your home, every home is different which is why it’s important to get a personalized evaluation of your property.