The average American’s perception of home value in the post-crash era runs much deeper than price and location according to a recent study by Berkshire Hathaway Home Services. “Home buyers are starting to define value in broader terms of personal confidence in their housing investment and how a property will meet their needs now and in the future”. Besides location and price, buyers say the greatest value in a home is where they find the most confidence and security. “They want a house that makes good financial sense and fits their family now and in the future” according to Gino Blefari, CEO of HSF Affiliates.
While the majority of homeowners interviewed are satisfied with their current home, a third said they look to sell their home in the near future. Those looking to move, are looking for homes which better fit their lifestyle and life events, among other reasons. The growing popularity of home renovations may affect the some of the numbers reported. Some owners opt to renovate to save the time, cost and headache of moving, especially when the location still works for them. Making an impact on the environment is becoming increasingly common so we are seeing more and more Eco-friendly appliances, systems and materials being included in renovations as well as in new construction. Are these the Millennials making the Eco-friendly statement, thinking in the “here and now”? Studies show that 61% of Millennials wish to purchase a home that they can upgrade to their preferences stressing energy efficiency and Eco-friendly systems and materials.
Zillow recently released a statement that says 62% of homeowners think their property increased in value over the last year, while only 19% actually increased and 77% decreased in value. Zillow suggests that homeowners are “out of sync with reality”. Maybe owners aren’t “out of sync” but rather changing their beliefs, like they change the wallpaper or maybe we are now seeing the gaps in generational priorities.
Besides homeowners that live in their homes, markets across the country are seeing a swing in investment properties. For many years, investors were looking for quick, inexpensive flips and now it is more common to keep a property and rent it out long-term. Larry Goins an investor/trainer in North Carolina and South Carolina says, “Market conditions are good for both flippers and rental property owners”. “There are deals to be had, but you have to work hard to get them”.
Overall, homeowners and potential buyers believe that the housing market has turned the corner. According to a recent Gallup Poll, the majority of American’s still believe that real estate is the best long-term investment. With interest rates pushing an all-time low and the economy and job market growing, experts say today is a more ideal time to buy a home than 1 year ago. Sounds like we are headed in the right direction.