NEW YORK – Aug. 22, 2016 – Economists are having a tough time figuring out what housing market moves baby boomers will make next. Americans over the age of 55 are veering from previous generations, opting not to retire but instead launching second or even third careers. They are shunning the traditional patterns of retirement, and that could have a big impact on their housing choices, according to a Freddie Mac Insight report.
Baby boomers are a critical piece to the housing market puzzle. Americans over the age of 55 make up a quarter of the population and control about two-thirds of the single-family home equity in the nation. Sixty-five-year olds who, on average purchased a home 35 years ago now tend to have a home value that is likely 3.7 times the purchase price.
Nearly a quarter of baby boomers recently surveyed by Freddie Mac say they need major renovations in their current home in order to stay there as they age – and many say they face financial constraints to take on those remodels. And some of the baby boomers may be underestimating the financial costs of outfitting their home with age-in-place features, says Sean Becketti, Freddie Mac’s chief economist.
As a result, about 18 million homeowners over the age of 55 may be shopping for another house in the next few years, according to the Insights Report.
Unlike earlier generations, however, baby boomers’ main reasons to move aren’t due to downsizing. Instead, the survey showed the key influences making these generations move are: Affordability of the community, the need for retirement amenities and a home with less maintenance.
Bottom line, the authors note: The 55-plus population is likely to be an active part of the housing economy for years to come still.
Source: “Boomers Ignoring Conventional Housing Wisdom,” Mortgage News Daily (July 19, 2016)
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Have you been dreaming of a retreat where the weather is warm and every morning blue skies greet you? Southwest Florida is a wonderful place to explore. But buying a second home is a big decision. Michael Saunders & Co. has four areas to consider. Let me know if I can help with any of these considerations. Here is a link for the whole article:
The greater Punta Gorda area is certainly changing.
This week Frontier airlines announced new service out of Punta Gorda Airport. In October they will begin offering flights to Punta Gorda with service in and out of Chicago, Philadelphia and Trenton, NJ.
My visit to the Burnt Store Publix (next to the Home Depot) on Saturday impressed upon me that our market is, in fact, changing before our eyes. This was the first time in 18 years that I had to park ten rows back in July versus being one of the only cars in the lot. Punta Gorda is officially on the map and there is no turning back!
The canal homes in Punta Gorda Isles and Burnt Store Isles saw a 50% increase in unit sales in July 2016 over July 2015, while the sale of condos in this market segment increased modestly. The increase in the “average selling price” also increased by nearly 15% during this timeframe for single family canal homes.
On the other hand, sales in Burnt Store Marina and Burnt Store Lakes were relatively flat. The average price of homes that sold went up (largely due to selling more higher priced properties). With interest rates remaining low, and the overall housing inventory remaining low, we are expecting a vibrant fall selling season.
In addition to our summer marketing initiatives, we are gearing up for fall when we will be pursuing more target marketing to past visitors to our area.