Building Trends

What changes can we expect in new home features? Several, in upcoming months. And the reason is that the profile of the "typical" buyer is changing. Where once our big demand for housing was the Baby Boomer generation, we're now seeing a big demand surge from the Generation X (the post-Baby Boomers) and Generation Y (aka The Millennials - those born after 1980). Builders are striving to accommodate new demand - Gen X and Gen Y aren't looking for homes which may be bought at a bargain because they need TLC; for the most part, they're looking for new construction, and simply want to move in, unpack their clothes, and text for pizza delivery. These are younger buyers with different criteria from their predecessors. To meet their needs, builders are adapting. Here's what we can expect:
1. A back-to-basics push as builders try to get prices down; houses will tend toward "no frills" as some of the "fancy stuff" falls by the wayside
2. Energy Star houses will be more in demand than ever, and their standards will be more rigidly enforced; energy efficiency will be much sought-after as utility costs rise and people become more conscious of costs and the ecological effects of energy-squandering
3. Houses will become smaller and storage sheds will become more in demand
4. As approximately 81 million Echo Boomers (those born between 1988 and 1999) enter the market, buidlers will respond to their demands; expect homes which take advantage of technology with advanced thermostats, Energy Star-rated appliances, and other eletronic advances, but all with an eye toward the bottom line
5. You'd best get used to the word WINKS (Women with Income, No Kids), as their numbers are growing quickly, and their demands will be specific to their own needs, rather than the traditional family requirements
6. We'll see more of the "Sandwich Generation" - people whose parents and children live with them; there will be an increased demand for two master suites, two cooking areas, and generous storage
7. Baby Boomers who plan to move are staying put - at least, they're staying in their own areas; they're going to want first-floor master suites, laundry areas near the bedroom, and lots of storage

Ask any Realtor, and they'll tell you that marketing techniques have had to change radically in the past five or six years, as the demographics of the Buyers have changed. Where we used to actually pick up the phone and call people, we text now, as they often prefer it. Where we relied heavily on print advertising, your listing is dead in the water if it isn't well represented on the internet. Builders are experiencing changes, as well - and we can expect to see those changes reflected in the market over the next few years as existing inventories dwindle and new homes are built.

Health Care Sales Tax on the Sale of Your Home?

THE MYTH:
By now, each of us has received at least one email which says something to the effect of: "Under the new health care bill - did you know that all real estate transactions are subject to a 3.8% sales tax?" And, as so often happens, this has been taken as gospel by many just because it passed along the internet with assurances that it came from reliable sources. NOT...

THE TRUTH:
Q: Does the health care law impose a 3.8% tax on profits from selling your home?
A: No, with a few exceptions. The first $250,000 in profit from thh sale of a personal residence won't be taxed, or the first $500,000 in profit in the case of a married couple, and then only those with incomes over $200,000 per year ($250,000 per year for a married couple) will be subject to it.

This is separate from capital gains taxes, which have been in place for years. The 3.8% "health care tax" will, in fact, affect very few people.