Get Ready for Smaller, More Affordable Homes

Have you been trying to buy a home, but higher mortgage rates and home prices are limiting your options? If so, here’s some good news – based on what Ali Wolf, Chief Economist at Zonda, has to say – smaller, more affordable homes are on the way:

“Buyers should expect that over the next 12 to 24 months there will be a notable increase in the number of entry-level homes available.”

In some ways, smaller homes are already here. When the pandemic hit, the meaning of home changed. People needed the space their home provided not only as a place to live, but as a place to work, go to school, exercise, and more. Those who had that space were more likely to keep it. And those that didn’t were in a position where they were trying to sell their smaller house to move up to a larger one. That meant the homes coming to the market during the pandemic were smaller than those on the market before the pandemic – and that trend continues today (see graph below):This graph also shows how the size of homes on the market changes seasonally. Larger homes tend to come on the market during the summer months when households with children who are out of school are looking to move.

That seasonality means, based on historical trends and the fact that fall is now approaching, we can expect smaller, more affordable homes to come to the market throughout the rest of the year.

That’s great news because, as Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), states, the need for these types of homes has gone up recently:

“. . . as interest rates increased in 2022, and housing affordability worsened, the demand for home size has trended lower.”

What Does This Mean for You?

The seasonal trend of smaller homes coming to the market in the later months of the year, coupled with builders bringing smaller, more affordable newly built homes to the market right now, is good news – especially if you’re finding it difficult to afford a home. Mikaela Arroyo, Director of the New Home Trends Institute at John Burns Real Estate Consulting, says this about a potential increase in the availability of smaller homes:

“It’s not solving the affordability crisis, but it is creating opportunities for people to be able to afford an entry-level home in an area.”

Bottom Line

In your quest for the perfect Telluride home, you've taken the first step towards discovering the charm of this breathtaking mountain paradise. If the allure of a smaller, more affordable abode in Telluride has piqued your interest, you're in luck! At Mountain Rose Realty, we specialize in finding the most captivating Telluride homes for sale, including those that cater to a budget-conscious mindset.

Our dedicated real estate expert, Anne-Britt, has an unparalleled knowledge of Telluride Real Estate. With her expertise, you can rest assured that you'll find a home that not only fits your needs but also your budget. From cozy mountain cabins to charming townhomes, there's a piece of Telluride waiting to welcome you home.

But the Telluride real estate market moves quickly, and to stay ahead of the curve, it's essential to stay connected. Don't miss out on the opportunity to secure your dream home in this picturesque corner of Colorado. To stay informed about the latest listings and get a firsthand look at the homes for sale in Telluride, CO, connect with Anne-Britt and the Mountain Rose Realty team today.

Whether you're a first-time homebuyer or an experienced real estate connoisseur, we're here to guide you every step of the way. Discover the beauty of Telluride living, all while making a smart investment in your future. Your dream home in the Rockies is closer than you think, and we're here to help you find it.

So, if the idea of a smaller, more affordable Telluride home appeals to you, let's make it a reality. Contact us now, and let's embark on this exciting journey together. Your Telluride adventure starts here with Mountain Rose Realty!