Hybrid Work Options Fuel Market

A once-in-a-lifetime coastal oasis with commanding views over Nantucket Sound and an unprecedented 280 feet of private sandy beach on 3.66 acres.

when covid-19 hit, it was the first time many people

had worked remotely. For quite a few, there’s no going back.

Many companies now allow employees to work from home permanently, while many others offer hybrid work situations, with employees coming into the office just a few days per week, or month.

With more-flexible work arrangements, some are spending more time in second homes, while others make the leap to relocate to vacation destinations permanently.

“The increase in hybrid working has given so much freedom that we are seeing more people asking themselves, ‘What would tomorrow look like if I could sell my house today…and move anywhere I want to go?’ ” said Christy Budnick, CEO of Berkshire Hathaway HomeServices. “It boils down to lifestyle choices.”

The pandemic caused a massive shift in priorities, leading people to put their lifestyle first. According to a 2022 Work Trend Index report by Microsoft, 53% of employees say they are more likely now to prioritize their health and well-being over work than before the pandemic.

As a result, home prices in places such as Cape Cod, the Bahamas and Hawaii—traditionally second-home locations for luxury buyers—have increased considerably.

Judy Whitfield, broker in charge of Berkshire Hathaway HomeServices Hawai’i Realty, said she began to see people relocating to Hawaii in September 2020 to get away from crowded cities.

“People were coming to Hawaii because at the time it was one of the safest places in the country,” she said. As more employees got the green light to work from anywhere, demand has only continued to increase. Some buyers are so eager to get their hands on a home in Hawaii that they make offers sight unseen.

“It’s definitely created an impact on the prices here, because these people are typically cash buyers,” Ms. Whitfield said.

On Oahu, prices for single-family homes hit a record high of $1.15 million in May 2022, up 17.9% from last year. Luxury home sales over $3 million are up 59% YTD over the same time period as last year.

Cape Cod Real Estate Snapshot

Inventory was down, while prices were up during the fi rst quarter of 2022 in Barnstable County.

Based on information provided to and compiled by CCIMLS covering the period 1/1/22–3/31/22

Berkshire Hathaway HomeServices Robert Paul Properties 2022 Q1 Market Overview

HOMES FOR SALE

2021

1,763

2022

1,102

37%

NEW LISTINGS

2021

1,100

2022

998

9%

SOLD LISTINGS

2021

1,093

2022

858

22%

MEDIAN LIST $

2021

$524,900

2022

$579,000

10%

MEDIAN SOLD $

2021

$525,000

2022

$590,000

12%

With buyers making primary homes out of their vacation houses, demands for amenities and space have also changed.

“They’re looking for bigger homes—they’re looking for an offi ce space, a media room, exercise rooms and outdoor space to keep their families entertained,” Ms. Whitfi eld said. Some newer condo developments also include shared workspaces for those working remotely.

In Cape Cod, incoming buyers are seeking out larger homes in favor of the traditional beach cottage.

“It’s kind of a role reversal,” said Emily Clark, president of Berkshire Hathaway HomeServices Robert Paul Properties in Cape Cod. “Before, we would see people start with smaller second homes on the Cape, and they would have their primary home close to the city. Now, they might be looking for something smaller in the urban area, because they’re able to spend more time away and work remotely on the Cape.”

Ms. Clark has even seen some renters from Boston and New York opt to make their fi rst home purchase in the Cape.

“Buy your second home fi rst,” she said. It’s a way for some to invest in a home earlier, as second-home markets can off er larger homes at a smaller price point than urban centers.

But prices are rapidly pushing upward. In Cape Cod, the median sales price of single-family homes increased to $675,000 so far in 2022, up 53% from $441,250 in March 2020.

53%

According to a 2022 Work Trend Index report by Microsoft, 53% of employees say they are now more likely to prioritize their health and well-being over work than they were before the pandemic.

STATE OF THE CITY

While some people are spending more time at their second homes, the allure of a vibrant life in the city is calling some buyers back.

“People who may have bought a lifestyle-driven property at a winery or beach location, for example, are coming back to the cities almost as a second-home destination, either because they have had to come back into the offi ce part-time, or they’ve missed the city life,” Ms. Budnick said.

In New York, where real estate prices took a hit during the pandemic, many are back on a full-time or parttime basis, said Brad Loe, executive vice president and director of sales at Berkshire Hathaway HomeServices New York Properties.

That trend is refl ected in the rebound of housing prices. As of the fi rst quarter of 2022, the median sales price in New York was $1.2 million, up 11% year over year.

Steven James, president and CEO of Berkshire Hathaway HomeServices New York Properties, has also seen activity pick back up in the city, in the real estate market and beyond. “It’s slowly trickling back,” he said.