Here are the top five trends I have observed:
Home Buyers Spend More to Live in the City
Many urban infill developments demand higher per-square-foot prices than new homes in the suburbs. Home buyers are willing to pay a premium to be located near work, restaurants and nightlife. In part, escalating gas prices are driving buyers back to the city as people tire of long commutes and the related expenses.
Some newer developments in downtown Sacramento are selling for more than $500 per square foot. But they are located near shopping, businesses, art galleries, trendy wine bars and gourmet cafés, which satisfy the needs of those buyers. Some buyers don't even own a car.
Modern Design Leads Trends
Think 1960's modern style with an edgy twist. Builders are creating designs with simple, clean lines, offset by imaginative lighting fixtures such as drop pendants, hand-crafted balls or hidden light sources. Some architects use creative built-ins that do double duty such as large flat-screen televisions, which swivel between rooms, or double-sided fireplaces.
Granite counters are beginning to lose appeal, perhaps because they are now ubiquitous and not special anymore.
I believe buyers are finding that vessel sinks aren't practical for day-to-day use; their preferences lean toward sinks that are larger, flatter and built-in to the vanity. Rainshower heads are installed in ceilings instead of walls.
Soft, cooler earth-tone colors are rebounding. The colors are more relaxing. I see a lot of blue, gray, tan and green and less of the warmer colors such as yellow, red or orange.
Green homes are very popular, featuring solar energy, natural fiber or eco-friendly wood flooring, compact fluorescent lighting and energy-efficient high-end appliances. There's even a place in some garages to plug in an electric car.
Lofts Gaining in Popularity
In many cities, lofts are the design of choice. They offer work-live spaces, which are generally multi-level. The first floor is often an open space that can be used as an office, warehouse or commercial place of business. The upper floors feature floor-to-ceiling glass windows -- views are highly desirable -- exposed ventilation and duct work, with fewer walls separating living spaces such as bedrooms, living rooms or kitchens.
Where the baths gain space, kitchens often lose space, making the kitchen work area more compact and efficient. Appliances are smaller in dimensions. Many appliances blend with sleek European cabinets.
Professional Singles are Teaming Up to Buy
Savvy professionals are buying inner-city homes together, especially those that offer two master suites. Higher prices make qualifying on a single income more difficult.
Some singles are finding that it's easier to pay one-half of a mortgage than the entire mortgage; plus it makes financial sense, particularly if half the mortgage is equivalent or close to the amount of a monthly rental. In these cases, buying versus renting is a logical choice.
Singles are attracted to downtown areas that offer walking distance to work, shopping and nightlife attractions.
Home Buyers Desire Smaller Spaces
Many baby boomers who are living outside the city often decide to move back after their children grow up and leave home. They find they are suddenly faced with too much space, too much upkeep and too far away from downtown attractions.
For a variety of reasons, these buyers would rather downsize, make do with a smaller space that is newer and offers more conveniences, than live in a larger suburban home.
