More Homes Being Listed, Inventory Favoring Less Square Feet

This July did not see the normal decline in newly listed homes that is typical of previous years as the summer comes to an end. Instead we are seeing a stable continuation of new listings later into the year, a welcome sign for a tight housing market. However there is somewhat of a catch, these homes tend to be smaller in size than previous years.

What are the reasons for these trends and how can you take advantage of them?

1.     Shift Towards Working Remote

·      Over the last year we have seen entire industries shift from five days a week in the office, to the majority of employees now working from home. As people are spending more time at home, they are looking for more space for privacy.

·      Additionally the shift to working from home means people no longer have as much of an incentive to be closer to densely populated urban areas where offices are generally located. Instead, many are ditching homes or condos in metropolitan areas and hunting down properties with more indoor AND outdoor space.

2.     Great Market For Young Buyers

·      This higher percentage of smaller homes being listed provides a great opportunity for younger first time home buyers, who may not care about having a ton of space.

·      If we see the supply of homes with less square feet continue to rise, the price tags on them should begin to drop making it a fantastic time for young professionals to make the shift from renters to homeowners!

For more information on current market trends compared with previous years head over to https://www.realtor.com/research/july-2021-data/