DEC 14, 2011
Accidential Landlords, Location and Secondary Rooms
December 14, 2011
Lexington Park (which has a great location near downtown Des Plaines)
Taylor Johnson, the Niles-based real estate marketing consultant, recently shared some of its housing market predictions for the upcoming year with UrbanTurf. A few of trends/predictions below that we found interesting.
More “Accidental Landlords”
Taylor Johnson believes that many homeowners will become landlords in 2012 by renting their current home. (This is on par with what UrbanTurf reported in October.)
From Taylor Johnson:
“This is a concept buyers have become far more comfortable with as they’ve seen the attractive rents they could get from their current home,” said Brian Brunhofer, president of Meritus Homes. “It’s a smart option for many of our buyers, as they can hold onto their current home rather than sell at a loss, while still being able to move into a larger house that better suits their needs.”Buy Sooner, Rather than Later
With low home prices and mortgage rates, buying could become more trendy next year:
“Renters are crunching the numbers and finding that, in many cases, it is actually cheaper for them to buy a home (than rent),” said Jeff Benach, co-principal of Lexington Homes. “Not only is their mortgage less than their rent, but they also aren’t throwing their money away anymore. In 2012, we’ll see more people forgo their lease for a mortgage to take advantage of the historically low housing prices and interest rates – while they last.”
Location Key to Home Purchases
During the housing boom, more homebuyers were willing to sacrifice location for high-end upgrades, but next year it will be all about location, location, location.
“It’s not enough for a home to have a good location, it has to have a great location, or buyers won’t even consider it. They want transportation, retail conveniences and good schools or the home is off their list,” said Benach. “Today, buyers who don’t even have kids want to be near good schools. And the days of buyers willing to accept a long commute to work or the grocery store are over. Buyers want to run out for ice cream and still have it be frozen when they get home.”
Planning for the Long Haul, Secondary Rooms Crucial
More homebuyers are planning to live in their homes for a long time, so secondary bedrooms will become more of a priority:
“A home with small secondary bedrooms or not enough bedrooms will be a deal breaker for buyers in 2012,” said Brunhofer. “Before, buyers would rationalize that once they outgrew their home they could just move. But now that buyers are purchasing for the long haul they want that extra bedroom space.”
"I am thoroughly impressed with the homes and upgrade options that Lexington Homes provided us during the pre-construction process."
- Anuraj and Joly