The high-end housing market experienced a considerable boost in 2020. During the pandemic, there was a significant increase in homes purchased that were over $500,000. What could contribute to the rise of expensive home purchases during a recession?
4 Reasons Why People Are Buying Luxury Homes
- Vacation home purchases have increased due to being able to work from anywhere and to reduce travel risk. When you can work from anywhere, why not work from a beautiful mountain retreat? The rise in vacation home purchases can be attributed to remote work. And in a year when travel came to a halt, vacation home purchases could be the solution to safe travel. You can still indulge in a change of scenery and avoid staying in hotels that could pose a potential risk of contracting COVID-19.
- The interest rates are impressively low. A huge reason why luxury home sales have increased is that people can afford to buy more home with such low-interest rates. If you could afford a $350,000 home at a 5% interest rate, you now can afford a much bigger house with a 3% interest rate. Now is the time to lock in that rate and go for the home of your dreams.
- Spending more time at home leads to needing more space. As people are working from home, exercising from home, and attending school from home, many have realized that they need more space in their homes. One of the biggest space concerns is requiring one or more home offices. The work-from-home movement isn’t going anywhere for a lot of people. The money and time saved on commuting can contribute to fixing up an old home for sale and upgrading to a bigger house.
- The need for outdoor space has increased as people want to socialize in small groups and safe places during the quarantine. With the pandemic, it is safest to gather in outdoor areas if you are meeting with people outside of your household. Many people have found the need for a bigger outside space for gathering with small groups. They also want to extend their inside space and provide more room to spread out when the whole family is at home much more.
The luxury home market will continue to rise in 2021. The pandemic effects have changed many lifestyles permanently. Countless companies have reaped the benefits of remote work, and it’s here to stay. The need for social distancing will remain for the unforeseeable future. And while we can’t predict what will happen with the interest rates, many buyers are seizing their opportunity to buy a luxury home that they can afford.
Contact a Real Estate Expert
If you have questions regarding luxury real estate in Sun Valley, Kirsten DeHart at Wood River Properties is the one to call. Our team can answer all of your questions about the market in Sun Valley. And we can introduce you to some beautiful properties in this booming, breathtaking destination. Give us a call at (208) 721-4131.