I’m as tired of talking about COVID as anybody else in the world, but I’ve got to bring it up because it has fueled two trends in the real estate market. One is that everybody is moving up the real estate ladder due to low interest rates and the boost in equity the market has given them. I am seeing far more sales over $1,000,000 in the past year. Some of these buyers are wanting to get into their favorite neighborhood and a lot of them are wanting a place in the country.
The other trend is scaling back. Many people just want a more simple life and/or are into the F.I.R.E. movement…..meaning Financial Independence Retire Early.
I’ve been wanting to scale things back myself the past few years…….including myself since I was so overweight. Here’s my story. I think sitting around the house during the lockdown got me thinking about it more.
I grew up in the 80s. I’m a Gen Xer. I wanted the American Dream just like everybody does. I never considered myself all that materialistic. I knew stuff wasn’t going to make you happy if you were not already happy. I viewed stuff as icing on the cake of life. I have had a good life. I married when I was young and still am happily married 30 years later. I had great kids who I love in a way they will never know until they become parents. Life was and still is good. I thought stuff would make it better. As my real estate career took off, I got the chance to do a lot of things I couldn’t before, some of them I never thought I would do. I took nice vacations. I had a big house in a prestigious neighborhood (that was very outdated because I hate remodeling a house while living in it.) I was able to collect cars and waste a fortune on them. I was able to write 5 digit checks to one of my favorite charities.
The more stuff I had though, the more stress I had. Stuff needs your attention. Stuff needs maintenance. I started realizing that this stuff I thought would be fun to have was actually making my life worse. My friends would tell me to hire people to take care of my stuff for me. While that saves the time of doing it yourself, telling somebody what to do and then checking that they did it still takes a little time and mental energy.
As I was considering upgrading my Porsche 911 S to a 911 GT3, I realized that better stuff wasn’t the answer. Why? Better stuff is still stuff. Remember, stuff needs your attention. Stuff needs maintenance. So, I jumped off that train and decided that I only wanted stuff in my life if it made my life better. I still have far too many cars and I think it is time to let a couple of them go even though I really enjoy them. I just think my life would be better with less since good stuff is still stuff.
Those are the two trends I am personally seeing with my clients. Most of them want to get the biggest and best house they can afford and others are wanting less house than they have had. I’ve personally done both so I get the appeal of each one. It’s fun working with both of these type of buyers since they are both getting what they want.