After a five-year hiatus, Americans are buying larger and more expensive homes again, but this time they’re not only being choosy about location, but about function and convenience as well.
Demand for luxury homes is soaring
The number of homes for sale priced at $10 million or higher has more than doubled in some places of the country, according to a study by Coldwell Banker. Predictably, those areas include wealthy enclaves in California such as Beverly Hills, where 19 such homes sold from November 2011 to October 2012. In Santa Barbara, 13 homes priced over $10 million sold during that time period. Other popular spots include Aspen, Colo., and Manhattan.
A separate study by home builder PulteGroup, shows that indeed, people are upsizing again. But aside from location, they are demanding functionality for their money. If they can’t get the access to public transportation, open space, proximity to jobs and recreation they desire, they are planning to add on to their current home.
The study says that 84 percent of homeowners between the ages of 18 and 59 have no plans to downsize their current living arrangements. During the housing boom, buyers sought extravagance, but now they are seeking more practical amenities such as energy efficiency and room to accommodate multiple generations.
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