Starter Homes Set To Boost First Time Real Estate Sales
b'With Terry Story, 26-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Luxury home sales have slowed down lately, so the gap in sales has been filled somewhat by lower priced new housing. For example, D.R. Horton in Florida, Texas, and the Carolinas is designing and building homes which are affordable for the younger first-time home buyer, a group that has in the past found new housing to be beyond their means. These homes range from a basic no-frills model to more up-scale, but still affordable levels.
The scale of homes is also seeing an increase, from an average of 2660 square feet, not too long ago, to 2720, according to the National Association of Builders. In addition, the average price of a new home today is $350,000, an increase of $100,000 since 2009, which is pretty remarkable.
Another current trend to note is the emphasis on playrooms as opposed to big yards, this being the obvious influence of millennials who are starting and raising families.
As for rising mortgage rates, Terry says, it will happen, but no one knows exactly when.
Not to be over-looked as affecting our current housing market is the fact that local communities, in order to not lose federal funds, must comply with affirmative action rules set by the U.S. Department of Housing and Urban Development, which can alter where affordable housing can be built.
Real estate agents are also concerned with the impact of erosion on beachfront property, especially here in Florida where so many houses and condos are seeing the water coming closer and closer. This issue, Terry emphasizes, is of great concern.'