I’ve suggested that there are two different markets. One-story homes, and everything else.
It’s because older buyers don’t want stairs. Simple enough.
Baby boomers control the destiny of the real estate market, and specifically, the supply of homes for sale. They (we) got here first, and they are sticking around longer than ever before. Thus, the supply of one-story homes for sale is tight, and when they do hit the market, they tend to sell for a premium.
It would be nice to identify the premium so all participants can recognize and implement different standards when valuating a home.
This is a dramatic example, but worthy of discussion.
Look at the similarities of these two homes in NE Carlsbad:
Same street.
Same year built (1984).
Same week found their buyer.
Same week closed escrow.
Both had views.
Both were on a culdesac.
Both sold over their list price.
Both listings started their remarks with the universal, “Nestled”
The two-story home was 2,335sf, and sold for $1,618,000, or $692/sf.
The one-story home was 1,863sf and sold for $1,912,000, or $1,026/sf.
A difference of almost $300,000, on the same street, same week!
Yes, the one-story was a flip so it had the standard lipstick, and its view included a peak of the ocean but it was through the powerlines, plus their towers were in clear sight:
There was an 18% difference in price! And 48% difference in price-per-sf!
In this case, I’ll concede a lipstick bonus, and suggest a standard 10% premium for one-story vs. two-story homes. It could be rising too – it’s not going down, that’s for sure!
