Duck your head and watch your elbows as homes are starting to shrink.
The median size of dwellings across the nation have deflated by approximately 40 square feet since the first quarter of 2015, according to a report from the Commerce Department. This is in stark contrast to the beginning of 2015, when the median size of a home swelled to an unprecedented 2,519 square feet, the highest on record for new homes.
The reason behind this modest shrink can be attributed to more new homebuyers looking for starter homes. The number of first-time buyers is projected to eat up 18% of new home sales, up from last year’s 16% according to the National Association of Home Builders. As more of these first-time buyers tiptoe down the rabbit hole of real estate, builders have begun anticipating this burgeoning market by revving up production of smaller entry-level houses.
Looking at our MLS statistics, the national home size dwindle is consistent with what we are seeing across the Valley. Although local data is beginning to echo the shift towards small houses, it’s too early to tell if this is the reality of real estate or just a mad dream. You can read the full article at RealtorMag.com.