I’m kind of a stat “freak” (really, ask my wife, sometimes it drives her nuts). I guess I’m a big picture kind of guy and stats always help me see that picture. Which by the way, if you’re stat freak yourself, you should sign up for my free Waco Home Sales Data Report. This will give you a look into the Waco Real Estate market. Best of all, the reports is FREE!
I was going through some stats recently (which apparently is a running joke here at the Bentwood Realty office… the fact that I have my nose buried in the numbers and it seems I have some new stat each day), but out of the blue I thought “Huh, I wonder what the bedroom factor is”? I know, it may be a stupid question, but you have to admit, it’s stupid enough to be interesting.
In them there olden days, the standard was 3 bedrooms, but with the internet and demand for home computers, the old standard it seems, has been slowly changing to 4 bedrooms. Well, that’s with NON FIRST TIME HOME BUYERS. Most of the buyers that I represent today seem to want at least 4 bedrooms. They want that extra room so they can have a “computer room”. Well, in all truth, a 3 bedroom home with an office would satisfy the majority of my buyer’s needs, but nevertheless, these days it seems experienced home buyers want that extra room. However, recently, I’ve been getting buyers who are wanting five bedrooms. Two rooms for kids, one room for them, one room for a computer room, and one room for guests.
If I was a builder, I’d primarily build 5 bedroom homes (and make them somewhat affordable). Right now, out of 1,534 homes on the market, there are only 71 five bedroom homes for sale. That only amounts to about 4.6%! If you break it down further and see what home builders are offering for sale, out of 165 homes that are classified as “new”, only 10 of those new homes have 5 bedrooms. That’s about a 6% penetration rate. With as many home builders out there constructing new homes today, it pays to stand out. For Waco, would standing out mean offering that 5th bedroom? Could be. Of course that stat does NOT include 4 bedroom homes that may have additional space that you could use as an office.
Just for fun, here are some sales stats broken down by bedrooms. Sales so far this year:
- 1,110 3 bedroom homes sold
- 573 4 bedroom home sold
- 38 5 bedroom homes sold
- Median square footage for 3 bedroom homes: 1,559
- Median square footage for 4 bedroom homes: 2,219
- Median square footage for 5 bedroom homes: 3,050
- Average price per 3 bedroom home: $110,092
- Average price per 4 bedroom home: $191,892
- Average price per 5 bedroom home: $236,884
- Average days on market for 3 bedroom homes: 128
- Average days on market for 4 bedroom homes: 160
- Average days on market for 5 bedroom homes: 204
I think it’s interesting that from 2004 (comparing the same time period of 2004 to year to date in 2008), sales of 4 bedroom homes have increased 24%. 3 bedroom homes have had an increase in sales of 7% . 5 bedroom homes have had an increase in sales of 31%.
Of course these stats won’t change the world, but I figured it would be fun to look at though!