The end of the year is always a time of great reflection. As this decade winds down, we look back on trends that impacted our industry and prepare for what lies ahead. With over 50 years of combined real estate experience, our real estate team has navigated all sorts of market conditions and we’re ready for the next year of opportunity and change. Here’s what’s on our radar:
Foreclosures on the rise
There’s no doubt that our markets have been booming for some time. However, lately, mortgage defaults are on the rise. There was a 13% month over month increase in foreclosure filings in October — the highest levels in 2019 (according to ATTOM Data Solutions). This ominous sign may be the foreshadowing of an impending market shift. With home prices and consumer confidence strong, many homeowners are running the risk of being financially over-leveraged.
Millennials run the show
Millennials have dominated the buying space in recent years, officially out-pacing older generations. This generation is also changing the way homeownership looks. Top trends include buying homes before marriage, bringing new energy to suburbs and exurbs, and skipping the starter home. We always enjoy working with new buyer clients and the energy that they bring to the table.
Baby Boomer turnover
With Millennials getting the limelight, let’s not forget about the Baby Boomers. This generation will continue to have a powerful impact on real estate markets throughout the 20s, particularly as they downsize and eventually transition into assisted living. This shift could spur a much-needed increase in housing inventory as family homes are listed (many of which have not seen a turnover in decades).
A new twist on “Live, Work, and Play”
Live/work/play communities are not a new concept. A major draw of city living is having housing and amenities close by. Recently, we’ve seen an increase in mixed-use developments just outside of cities comprised of housing, recreational outlets, shopping dining, and commuter options to get downtown. “Live, Work, and Play” is now moving even further out – to the burbs. Largely driven by the high cost of city-living, home buyers have been pushed further out, yet still demand a neighborhood that provides for their needs and mimics the conveniences of the city. Some North of Boston examples include the rapid development of Vinnin Square in Swampscott, the expansion of Rantoul Street in Beverly, and the planned residences at the North Shore Mall.
Increase in global activity
A more connected world has broken down geographical barriers. Purchasing a home abroad or investing from out of state may have seemed like a daunting process in the past, but is becoming more prevalent. Having the right networks and technology makes it easier to cater to a global clientele. This trend is becoming so prevalent, that our office has a dedicated referral coordinator to assist our team with making connections across the 990+ Sotheby’s International Realty® offices world-wide. In fact, across our network over $1.4 billion in referral sales were made last year.
The luxury market is changing
Gone are the days of McMansions. Affluent consumers are no longer connecting with ostentatious and cookie-cutter homes. The focus has shifted to how a home can reflect one’s core values and what’s most rewarding in life – experiences, art, inspirations, family and relationships. The conversations around luxury are changing, particularly amongst young, emerging affluent consumers. This new generation of wealthy buyers is more engaged and passionate about real estate.
Real estate as an experience and entertainment
Home buying and renovation shows have taken center stage — so much so that reality TV shows are actually influencing reality. The public is arguably more engrossed with real estate than ever before – getting design inspiration, knowing what’s in style, looking at places to move or travel, dreaming about the type of home to own, and tracking what’s happening in their local markets.
That’s a wrap!
During this holiday season another decade comes to a close. It is a time of new beginnings and opportunities. During this phase of change, contemplation occurs and ideas flourish. If you are approaching a decision regarding your current or future residence, allow us to assist you.
As members of the Sotheby’s International Realty Network, we believe in the art of uniting exceptional homes with exceptional lives.
The first step is to schedule a one-on-one real estate consultation. Let’s discuss your vision.