The Wall Street Journal recently reported that the size of new construction single family homes has fallen significantly in recent years. The time of affordability for the "McMansions" has waned. The report indicated that home sizes were up for 30 years until the beginning of the building boom in 2005. The purchase of single story homes with fewer bedrooms during the boom increased by a greater percentage than previous recessions by 43%. This was due in part to the need to build less ornate homes to compete with the rising inventory in the foreclosure market.
This article obviously spurred the question in my mind as to how our market in Southeastern North Carolina has responded. Below is how one multiple listing service has the numbers reported.
Since January 1, 2009 - June 16, below are the staggering numbers
Single story existing and new construction Two Story existing and new construction
<1250 square feet 969 9
1251-1500 1045 88
1501-1750 673 225
1751-2000 217 221
2001-2250 91 249
2251-2500 41 222
2501-2750 19 110
2751-3000 11 41
3000+ 9 52
Ladies and gentlemen, this data is not all encompassing, but it verifies the Wall Street Journal report. Definitely something to consider when you are purchasing a home with the intent to resale in less than 5 years. These numbers are indicative of the decrease in the average sales price and goes back to my previous post regarding which generation has the greatest buying power and their affordability when buying a home.
All points to ponder. I'd love to hear your thoughts on this post.