Offered by Jan Hepp-Struck
Whether buying, building, or renovating a home, part of the equation is the question of appreciation. “What features will help my investment appreciate the most, or the fastest?” Since 2011 the market as a whole has undergone some significant changes, and the answer(s) to this question may surprise you!
Across the nation, smaller homes (<1,200 sq. ft.) are appreciating at a much higher rate of 7.5% as opposed to larger homes (>2,400 sq. ft.) at only 3.8%. When combined with the trend of bringing buyers back into city centers, two key factors—baby boomers downsizing and millennials looking for aff ordable starter homes—have created the perfect storm for the increased demand, and subsequent shortage, of smaller affordable properties. Despite the diff erence in ages, boomers and millennials are surprisingly similar in terms of desired home features, so together, they are driving several trends.
The Realtor.com team recently crunched a bunch of data on home listings from 2011 to 2016 looking at the annual price growth rate of homes with particular features. Their conclusions in terms of adding long-term value: huge walk-in closets are out, 2-car garages are in; more bedrooms are out, open/flexible floor plans are in; patios and hardwood fl oors are in, and while stainless steel appliances and granite countertops are considered “must-haves” to be competitive, they no longer influence long-term valuation as much as they used to. I think it’s safe to say that “the times, they are a changing!”
For proven expertise in establishing your home value and/or searching for a new or existing home, please call Jan at (303) 520-4340.
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