This recent article in the Arizona Republic noted that the average family home today is larger than it was 10 years ago. That trend seems pretty obvious in hindsight. But the article goes on to ask, what will the trend be in the future? The answer: Luxurious.
I see this trend throughout the Valley right now. For example, almost every home Pulte is building today comes standard with granite countertops, tiled flooring in the kitchen, and stainless steel appliances. Just 2 years ago an average kitchen came standard with laminate countertops, white or black appliances, and vinyl flooring. The competitive landscape has caused builders to really step up their offerings to win buyers. It’s been enabled by prices coming down, but looking forward, it means that these “standards” will never again go back to laminate and vinyl.
In the next decade, I also expect to see more technology in our homes and more energy efficiency. We see the energy efficiency already in the new laws for SEER rating on AC units, but I expect window efficiency will also improve noticeably for the average home as well.
For current home owners, it means if you don’t have this new “standard” in your home when you want to sell, you’ll probably have a hard time attracting buyers. In the very near term, sellers will have to be not only aggressive with their pricing, but also very aware of any updating that is needed in the home. Ideally, sellers address that updating before it is listed, but if not, that updating must be reflected in the listing price, if there is any hope of selling the home.
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