Two features matter more to potential home buyers than air conditioning

Two features matter more to potential home buyers than air conditioning

With Dallas residents suffering through a late summer heat wave of 100 degree days, you don’t need a researcher to tell you that air conditioning is a must-have.

Even so, a new study by the folks at Zillow tells us that more than three-quarters of U.S. buyers say they had to have AC in their new digs — one of the highest-rated features.

“Affordability, a preferred number of bedrooms and air conditioning top the list of important home characteristics for most shoppers,” Zillow’s Buyer Wants and Needs list says.

Seventy-six percent of buyers said they have to have air conditioning.

The other 24% weren’t from Texas, where we rate AC higher than indoor toilets or a roof.

“In the South — known for being hot and sticky in the summer — almost twice the share of buyers value AC (87.6%) over being near family and friends (44%),” Zillow says.

Off-street parking and multiple bathrooms were also on the list of preferred features.

At the other end of the preference list, hot tubs were one of the things home buyers were least likely to crave.

Again, Texas and summer — who wants to sit in hot water?

 

*Article by Steve Brown, Real Estate Editor for the Dallas Morning News

 

How to Judge the Impact of the Next Economic Slowdown on Housing

We’ve experienced economic growth for almost a decade, which is the longest recovery in the nation’s history. Experts know a recession can’t be too far off, but when will this economic slowdown actually occur?

Pulsenomics just released a special report revealing that nearly 6 out of 10 of the 90 economists, investment strategists, and market analysts surveyed believe the next recession will occur by the end of next year. Here’s the breakdown:

  • 9% believe a recession will occur this year
  • 50% believe it will occur in 2020
  • 35% believe it will occur in 2021
  • 6% believe it will occur after 2021

When asked what would trigger the next recession, the three most common responses by those surveyed were:

  1. Trade Policy
  2. Stock Market Correction
  3. Geopolitical Crisis

How might the recession impact real estate?

Challenges in the housing and mortgage markets were major triggers of the last recession. However, a housing slowdown ranked #9 on the list of potential triggers for the next recession, behind such possibilities as fiscal policy and political gridlock.

As far as the impact the recession may have on home values, the experts surveyed indicated home prices would continue to appreciate over the next few years. They called for a 4.1% appreciation rate this year, 2.8% in 2020, and 2.5% in 2021.

Bottom Line

On the same day, in the same survey, the same experts who forecasted a recession happening within the next 18 months also claimed housing will not be the trigger, and home values will still continue to appreciate.

The #1 Reason to List Your House for Sale NOW

If you are debating whether or not to list your house for sale this year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes for Sale

The National Association of Realtors’ (NAR) Chief Economist Lawrence Yun recently commented on the current lack of inventory:

“Inventory coming onto the market during this year’s spring buying season – as evidenced again by last month’s weak reading – was not even close to being enough to satisfy demand. 

That is why home prices keep outpacing incomes and listings are going under contract in less than a month – and much faster – in many parts of the country.”

The latest Existing Home Sales Report shows that there is currently a 4.1-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market, and 6.1% lower than last year’s inventory level.

The chart below details the year-over-year inventory shortages experienced over the last 12 months:

 

Anything less than a six-month supply is considered a “seller’s market.”

Bottom Line

Let’s get together to discuss the supply conditions in our neighborhood so that I can assist you in gaining access to the buyers who are ready, willing, and able to buy right now!

Wellness Real Estate is Here and Growing Fast

From personalized wellness programs to fitness-focused apps, luxury homes are focusing on making residents feel better.

We need to take wellness into account in our non-stop paced digital lives. An increasingly isolated and aging population. Rising chronic illness. Climate change. Given the pressures of the modern world, a gym membership and taking the occasional “mental health day” often just aren’t enough to maintain a healthy lifestyle.

One way to achieve optimum wellness, experts and developers say, is by choosing a home that is designed for it.

Real Estate Developers Take Wellness Into Account

A growing number of developers believe a healthier home features are a big pull for buyers. This real estate boom first sought to make office environments healthier. Now it is focusing more on the residential market, according to a new report released by the Global Wellness Institute (GWI).

What makes a “well” home?

Homes that are designed for a healthier lifestyle usually focus on energy efficiency and sustainable construction first, and then look at wellness programs within the community. Indoor components that can make a home healthier may include natural lighting, air quality, proximity to green spaces, exercise facilities, and nontoxic paints and finishes.

The U.S. leads the market share

Wellness real estate has grown to a $134 billion global industry, according to researchers at GWI. The number of residential, mixed use, and commercial properties has risen 6.4 percent annually since 2015. The GWI predicts that health-oriented real estate will continue to grow at that pace through 2022 and reach $180 billion by then. Globally, the U.S. leads the market share in wellness real estate developments.

“We’re becoming more unhealthy as we live longer,” Ophelia Yeung, a senior research fellow at the GWI, told Mansion Global. That has led more people to ask themselves “why they’ve invested their life savings in a home that is not keeping them well.”

Buyer’s are willing to pay a premium for a healthier home

Prospective owners may be willing to pay a premium for a healthier home or community. Home buyers may be willing to pay 10 to 25 percent premiums for homes in wellness developments at the middle and upper end of the market. “There is a recognition that building for human health is going to be the core [value]” in the real estate market going forward, Yeung says. “When you look at it from that perspective, it’s a whole lot bigger than the luxury apartment with the spa, the gym, the swimming pool.”

Personal wellness advisors play a part

At some high-end developments, staff are assessing the homeowner’s health as soon as they move in, Mansion Global reports. For example, condo owners at Canyon Ranch in Lenox, Mass., consult with a personal health  adviser to implement individualized wellness plans, which include on-site physicians, nutritionists, exercise physiologists, behavioral counselors, and spiritual wellness experts.

The mid-market should catch up in 3-5 years

The wellness movement seems to be taking root more in the high-end market, but the lower end of real estate will soon catch on too, Kavita Kumari, principal engineer at Cundall, a London-based multidisciplinary engineering consultancy, told Mansion Global. As the products and materials used in making healthier homes grow in appeal, costs will come down, Kumari says. Yeung estimates that in three to five years, the mid-market will catch up with the luxury segment. Broad consumer awareness about healthy homes is “just being awakened,” Yeung says.

 

Source: Article first published by Mansion Global (June 2018) “Wellness Real Estate Has Blossomed Into a $134 Billion Industry Worldwide—and It’s Growing Fast”.

 

Thanks for stopping by the Indigo Skye Group blog! Be sure to check the blog weekly for more informational and educational articles about real estate.

Related article: “Kids Opinions Matter Big When Buying a Home“.