2021: Lessons from the Pandemic

On this day December 31, 2021, the last day of 2021 it seems prudent to look back and determine the lessons we have learned from the experiences in 2021.  Lord Toynbee stated that History Repeats Itself.  So then, as the Lessons below should be a guide to what will repeat in 2022.

I.   70% of buyers have been younger consumers.  This was reflected in their financial ability to escape from metropolitan or highly populated areas.  Covid 19 and the mutants had an impact on future lifestyles.  Superior homes with large spaces and multiple rooms that gave authenticity to their life styles and provided a positive environment for the "work-at-home" attitude.

II.  Location and property types and sizes were no longer the only consideration.  An increased knowledge on the importance of achieving more well-being, deeper consciousness, and cultural relevance, that would ultimately empower buyers to make ethical decisions, were important motivations.

    This was clearly reflected in the demand and absorption rate of homes that offered more sustainable, environmental, and wellness functionality of interiors and exteriors.  Properties fitting those parameters sold within days, subject to multiple offers and over asking prices.

III.  Buyers that moved to rural communities decided to stay, finding that the quieter and smaller communities suited the new lifestyles.  The suburbs provided an alternative to rural living with easy commuting when it was necessary.

    There was an uptick in families becoming more involved in their newly adopted local communities, not from a social aspect, but more importantly from sustainability and a diversification context.  The new buyers recognized to refocus their values and adapt with a changing societal landscape.  One of the most significant trends in 2021 was the world of interactive innovations; the growth and diversity of technology. 

IV.  The youth led the online market in product purchases, while the purchase of homes, especially Luxury Homes, was and is still controlled by Gen-X and Baby Boomers.  Interestingly many of the purchases were completed remotely. The Pandemic accelerated the trend, digital processes already in place have now become the norm; rather than, the exception. A recent study states that 40% of the global buyers polled would now purchase a home without physically visiting it first.

V.  Technology and platforms made the process efficient and effective; as well as, interactive.  Both are now very much part of the real estate experience.  While technology is important, 87% stated, and 8% were unsure, they would use a real estate professional to guide them through the process.  Personal service, local knowledge, industry contacts and the art of negotiation were ultimately the most important aspects of buying or selling a property that could not be replaced by a digital platform.

 VI.  2021 may not have been the easiest year.  the world still faces uncertainties from the Pandemic and its environmental, economic and domestic/international political issues.  People are recognizing the need for social and environmental change.

CONCLUSION:  The art of selling and buying in this market needs a critical and analytical approach, understanding the realities and setting expectations accordingly will ensure that goals are achieved.  For home owners looking to buy or sell in today's market working with a realtor that can capitalize on the preferences, trends, and demands in they dynamic and evolving environment is essential.

HAPPY NEW YEAR!  MAY WE LIVE IN A CHANGING WORLD AND SURVIVE, ADJUST  AND PROSPER

* SOURCES: PERSONAL OBSERVATIONS,  DECEMBER LUXURY MARKET REPORT INSTITUTE FOR LUXURY HOME MARKETING.