Are “Forever Homes” the new trend?

 

 

    I just read an interesting article on Bisnow.com that told of a B of A study of aspiring homebuyers. According to the study, 75% of first-time buyers prefer to buy a long term or forever home, rather than the starter home or condo where, traditionally, they would hope to build equity towards their next home. It also, surprisingly, said that 35% actually plan to retire in that home. Is this actually a new trend? It’s always interesting to see that the conversations in my office about our current clients and their wishes actually turn out to be more than just a local leaning.

    Of course, I still have those buyers who are excited to get into homeownership rather than renting, find an entry level home and plan to build equity for their next home. Just the way many of the previous generation did. But increasing number of people, especially dual income families and many of these in their early 30’s, are saving large down payments and combining two large salaries to buy into the American Dream and find the perfect home. They are looking for size, neighborhood, many want updated home and schools. And, they want it all!

    My question is why? Why this change in attitude? Do they have less confidence in the housing market that they may not make enough of a gain on a starter home to make it possible for them to move up? Are they looking for instant gratification? Are they not seeing enough inventory in the entry level market and don’t want to settle? Are they starting later in life and feel the need to skip a step? Are the high salaries and stock options making it easier to save for the huge down payment? I am certainly not sure, but very curious. Any thoughts?

 

Small Starter Bungalow?

or…..

Large Home with Great Schools?