As the economy slowly improves and some consumers’ anxieties ease, buyers are upsizing again. In recent years, most borrowers were looking for homes with about 2,200-2,300 square feet. They were trying to downsize and get rid of high mortgage payments. But over the past year the average square footage has risen to about 2,500. And in some parts of the country, it has risen even higher. One New Jersey developer has clients who, previously were asking for homes in the 3,500 to 5,500 square foot range, are now asking for 7,000+ square foot homes.
The news gets bigger…I mean better! According to the National Association of Home Builders, the sale of newly built homes rose 3.3% in April and 9.9% over last year. Thirty percent of those homes were 3,000 square foot or bigger, which means the McMansions are back! In some cases, builders are making homes larger for the same price as a smaller one would cost to increase sales. They are making rooms more spacious, adding crown molding and making kitchens larger to appeal to the buyers.
Sales of single-family homes regardless of price were up 19 percent for the first four months of 2012 compared with the same period last year. In April, the average home price was $282,600, up from $268,900 a year earlier, according to census data, though that is down from $329,400 in early 2007.
Check out this story from the Wall Street Journal for more.
On the flip side, here are 10 tiny homes you will just love.