Will we see new trends in real estate?

Over a decade ago people thought that the new trend in real estate would be baby boomers, who were close to retirement, would downsize and build smaller but high quality homes. As I look back over the last decade it seems as though the actual trend was to the contrary and that baby boomers were actually building bigger homes – retiring or not. The term "Mc Mansion" was commonly heard. During the last decade baby boomers were also using the equity of their highly appreciated primary residence and buying second homes.

Today we have a different picture. The current economic environment has impacted not just one element of our lives, but several. The most notable being higher gas prices and a significant drop in both our monetary investments as well as our real estate. I believe the severity of the current economic conditions will result in new trends in the way we live. In the same breath, I also believe that since the definition of "home" is different for every person, all styles of homes will continue to be necessary in order to meet everyone's needs.

With that said, I believe the following trends are very probable:

1. Retiring baby boomers will downsize and in the process will determine what aspects of a home are truly important to them. I.e. An office for two people and master bedrooms on the main floor.

2. With the very high cost of long-term care facilities, I won't be surprised if we see more parents moving in with children and, therefore, see more homes and condominiums being built with two master suites.

3. Retirees may own two homes, but both homes will be on a smaller scale.

4. Condominiums in urban areas will be in demand not just for the younger generation, but also for retirees. Many retirees are very busy and they are more interested in volunteering, traveling, etc. and less interested in taking care of a lawn and garden.

5. The demand for "green" building will slowly increase as the cost/benefit gap improves.

6. Urban areas will be in more demand as all generations will seek the convenience and efficiency of urban neighborhoods.

7. City parks within the urban neighborhoods will be important for all generations especially for families with children.

The good news about real estate is that we all need a place to live and we are fortunate to have the freedom to choose a home that meets our individual priorities.

Lin J. Nelson

STERLING REAL ESTATE GROUP
2620 N. Harbor Loop, Suite 17
Bellingham, WA 98225

360-961-0408
lin.sterling@comcast.net