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affordable home

Have you tried to buy a home, but high mortgage rates and home prices are limiting your options? Here is good news – based on what Ali Wolf, Chief Economist at Zonda has said – smaller, more affordable homes are on the way:

“Buyers should expect that over the next 12 to 24 months there will be a notable increase in the number of entry-level homes available.”

Smaller homes are already here. When the pandemic hit, the meaning of home changed. People needed the space their home provided not only as a place to live, but also to work, go to school, exercise and more. Those that didn’t were in a position to sell the house and move up to a larger one. It means the homes coming to market during the pandemic were smaller than before the pandemic.

Based on historical trends and the fact that fall is now approaching, we can expect smaller, more affordable homes to come to the market throughout the rest of the year.

As Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), states, the need for these types of homes has gone up recently:   

“…as interest rates increased in 2022, and housing affordability worsened, the demand for home size has trended lower.”

What does this mean?

The seasonal trend of smaller homes coming to the market in the later months of year, coupled with builders bringing smaller, more affordable newly built homes to the market right now, is good news – especially if you are finding it difficult to afford a home. Milaela Arroyo, Director of the New Home Trends Institute at John Burns Real Estate Consulting, says this about a increase in the availability of smaller homes:

It’s not solving the affordability crisis, but it is creating opportunities for people to be able to afford an entry-level home in an area.”

To keep up with what’s available in your area, connect with a local real estate agent.

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