Hello, it's time to sell!
The housing market in the United States experienced a spike last year, following an increase on stay-at-home mandates. This forced many families to rethink their lifestyles and what they needed from a house; for example: two offices with room to grow into one full time office space, or if both spouses work then maybe some extra storage areas would be necessary so that there is enough space in each household's bedroom closet. One of these changes was most noticeable when it came down to children and education as well as outdoor activities such as sports practice where you need more than just your front yard or park nearby.
The prices of homes in the United States increased by double digits last year. 19 out of 20 major metros saw increases, with Chicago being the only exception where they still rose 9%.
What does this mean for those who purchased a second home?
According to the same Zelman report, sales for second homes rose an astonishing 27% in 2020.
Let's assume a buyer purchased such a home for $500,000. Assuming the middle 13.2% appreciation shown above, that home would now be worth about $566,000.
Those who bought second homes to improve their lifestyle during the height of the pandemic, or those who just wanted to be in a safer environment, also made a great investment.
What should these homeowners do now that the pandemic is receding?
The buyers of those second homes now have a decision to make. Many will move back to the original home they still own (the one that's closer to work, friends, and family). Should they keep the second home? That could depend on answers to questions like these:
Now that you may have to go back to the office (at least a few days a week) and students are required to physically attend school, would you still use the second house enough to warrant the expenses of an additional home?
Would you go to the second home on most weekends, or would you return to the movie theater, attend sporting events, eat out at fine restaurants, or spend your time traveling again?
If you decide selling makes sense, let's connect today to discuss the value of your second home.