Home Upsizing Gains Momentum

With recent lows in the market, many homeowners have had to downsize. As we move into the New Year, many Americans are regaining their confidence in the housing market and are making the decision to “upsize” a reality. According to a recent poll by Pulte Homes, Eighty-four percent of homeowners ages 18-59 said they did not have plans to downsize. According to the Census Bureau, The average size of a newly built home increased 3.7 percent in 2011 from 2010. Sales of homes priced above $750,000 jumped 50 percent from a year ago. This has been noted as a very important shift in the high-end housing market as well as the median home prices which will benefit the economy directly as well as lenders, home maintenance and other service providers.

Distressed home sales are continuing to decline as well. Foreclosures and short sales made up just 22 percent of home sales in November,  the lowest share in five years. The number of homes on the market is still at its lowest at just under 5 months. So many buyers and investors continue to snatch up deals on Short-Sales so its a bit of a win-win. First-time buyers are still serious and current homeowners are finally feeling more confident to sell and upgrade while prices are still near the bottom. California has 6 cities on the Top 10 list of sellers markets. Smart move!

Norma Mardelli

Top 2% Coldwell Banker Internationally Luxury Homes Specialist Representing: Pasadena, San Marino, La Cañada, South Pasadena, Arcadia, Sierra Madre, Altadena, San Gabriel, Alhambra, Glendale, La Crescenta