McMansions

[RE2Boys]

While out for a walk yesterday I noted a realtor hanging "Reduced" signs on a nearby McMansion. Talked to him for a few minutes and found out the new price is $450K, the original asking price last Spring was $539K.

Very suprised at the large drop in price, but it is still high for the area, most homes go for 200-300K. Most likely built in the wrong neighborhood, the previous owner was the developer of the neighborhood and reserved a lot for his dream home. Unfortunately both spouses past away last winter within a month.

Recalled reading an article in the past week regarding the drop in premium buyers willing to pay for McMansions in recent years. One of many articles found through Google:
McMansions Define Ugly in a New Way: They’re a Bad Investment - Bloomberg

[brucethebroker]

The trends in the Midwest are not good for McMansions. Millennials want starter homes (in our area, 1500-2000 sq. ft.) and boomers are downsizing. Many Gen X'ers do not want to commit to high mortgages with today's economy. Smaller homes not only save he buyers money, but the numbers work if you are transferred and have to rent the place out.

[Dawg52]

For me...a McMansion was never an option. A single guy doesn't need one anyway. But it is amazing the number of big houses that are still built today even with so many 1990's models on the market. Glad I don't have one I need to unload.

[braumeister]

Homes in a neighborhood have similar values for a good reason. Those that stick out like sore thumbs don't sell.

At our last house that we sold in 2015, I'm pretty certain that every house within a one mile radius was between $150K and $350K. A very common range.

All except my next door neighbor. It was an 11,000 sf home on five acres that was built as a dream home by a guy who died within weeks of moving in. His widow sold it to my neighbor for $1.2M about 15 years ago and moved to Florida.

My neighbor put it on the market for $1.6M about five years ago, but never got a bite in the two years he had it listed. So he resigned himself to just staying there.
There are a number of places in the metropolitan area where the home would fit in just fine, but my old neighborhood wasn't one of them.

[Options]

Typical MSM (Bloomberg) claptrap. Provides some examples of housing markets and in California cites Fresno. What?? Fresno is not at all representative of expensive CA real estate markets. McMansions are alive and well in the SF Bay Area and Los Angeles. I walked by about 4 under construction on the same street (typical LA tear downs) on the way home this morning. All will list for anywhere from $4M-$12M and will most likely sell for asking price or above.

[athena53]

Quote:

Originally Posted by brucethebroker The trends in the Midwest are not good for McMansions. Millennials want starter homes (in our area, 1500-2000 sq. ft.) and boomers are downsizing.

Yeah, the house we sold last year was borderline McMansion- it was a bit smaller and cheaper. Friends who had one closer to the classic definition, tastefully updated, beautifully furnished, listed theirs at $575K and sold for about $100K less after multiple markdowns.

Yet, they keep slapping them up in treeless lots. They all start to look the same after awhile.

[6miths]

Big houses seem to be alive and well in our area. Personally, I can't wait to downsize and will take whatever someone wants to give me for this place!

[misanman]

McMansions doing pretty well in our community. House across the lake listed for $1.2M. I don't know what it sold for but it was only on the market for about a month.

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[W2R]

Larger homes might or might not be selling as quickly as smaller homes here. I haven't really been following large home sales closely.

Often families pass down the large family mansion from parents to child. More than any place I have lived, families stay here, often for hundreds of years, and just do not go so that works out nicely.

Oddly, what few new homes have been built here in recent years do not seem to be small. I haven't noticed any under 2000 square feet, other than townhouses or condos.

Still, I don't think we really HAVE McMansions, because we don't have many new homes being built here in town, much less whole developments of new homes. Maybe up on the North Shore of Lake Ponchartrain, but not down here in New Orleans. What we have down here as far as large houses are concerned, are mostly beautiful old mansions with fascinating architecture.

[Jack_Pine]

Around here a 500k home would not qualify for McMansion status. Actually I would never think of a 500k home to be one of those no matter where it was.

[Bestwifeever]

Quote:

Originally Posted by Jack_Pine Around here a 500k home would not qualify for McMansion status. Actually I would never think of a 500k home to be one of those no matter where it was.

I'm thinking there's a line between mcmansion and mansion that is getting blurred into any big new house being called a mcmansion.

[HFWR]

Depends on location, location, location...

$500k would get you 4000-ish sf around these parts.

[HFWR]

Quote:

Originally Posted by Bestwifeever I'm thinking there's a line between mcmansion and mansion that is getting blurred into any big new house being called a mcmansion.

Big, boxy, cookie-cutter monstrosity...

[FUEGO]

Quote:

Originally Posted by HFWR Depends on location, location, location... $500k would get you 4000-ish sf around these parts.

Yep. 32 listings in Raleigh asking $344k to $500k for 4000+ sf homes. The cheapest one comes with a 5 car garage. Most look McMansion-ish. Lots of brick facade paneling, fancy porches, and the side and rear are builder grade siding with little architectural details. Though there are some gems in there closer to the $500k price. No way I'd ever want something that huge even with the five of us. 1800 sf is more than enough, thanks.

[Cap_Scarlet]

Quote:

Originally Posted by brucethebroker The trends in the Midwest are not good for McMansions. Millennials want starter homes (in our area, 1500-2000 sq. ft.) and boomers are downsizing. Many Gen X'ers do not want to commit to high mortgages with today's economy. Smaller homes not only save he buyers money, but the numbers work if you are transferred and have to rent the place out.

I have to smirk at 1,500 - 2,000 being called a "starter" home.

In the UK (where i am from) the average home is 818 sq.ft.

Different perspectives,

[daylatedollarshort]

Quote:

Originally Posted by Cap_Scarlet I have to smirk at 1,500 - 2,000 being called a "starter" home. In the UK (where i am from) the average home is 818 sq.ft. Different perspectives,

It used to be like that in the U.S., too, in the 1950s. Average home sizes were 918 sq feet for 3.8 people, according to an article in Yes! Magazine.

[Closet_Gamer]

We used to own what could likely be called a "McMansion"...3000 sqft on an 8000 sqft lot. Two trees that we planted. It was a custom home but fit the McMansion theme all the same.

Moved to a much more expensive part of the country so we really had to stare down the trade-offs b/c our housing costs were going to more than double in pretty much any scenario. We found a 40 year old home with 2400 sqft on a 22000 sqft lot with several full grown trees.

The house needed a ton of work and even now, with >$150k invested to update it, it's still nothing to write home about...but I can't imagine moving back into tightly packed, McMansion, home owners association h*ll.

There are much bigger, nicer homes on big lots near us and we occasionally talk about buying one...but then we think about having a $20k/yr tax bill, etc and go home to our small home and smile.

[target2019]

Location is what it's all about. Around here prices have not recovered from the big one. Many empty homes means lower prices in a lot of cases.

[eytonxav]

In my community the town is quite polarized, with many not wanting any smaller homes and lots to be built. Therefore, MacMansions continue to trend up, and many that want to downsize have limited choice and often times are forced to leave the area.

[athena53]

Quote:

Originally Posted by daylatedollarshort It used to be like that in the U.S., too, in the 1950s. Average home sizes were 918 sq feet for 3.8 people, according to an article in Yes! Magazine.

That doesn't surprise me. My parents, 4 siblings and I occupied a 3-BR, one bath house till I was 11. Not sure of the square footage; I can't look it up since a subsequent owner added to it at one point. Now if each kid doesn't have his/her own BR it's practically considered child abuse.

DH and I were guilty of buying WAY more house than we needed when we moved to a LCOL area and I'm glad we sold it last year. I wanted to get out before too many baby boomers reached the same conclusion: big houses are expensive to buy and maintain and it's scary to have so much of your assets tied up in your home. It might turn out to be a good investment, it might not.