According to a recent national survey, Real Estate professionals are seeing younger retirees (ages 60 and under) looking to purchase homes. Furthermore, sales associates and brokers surveyed believe market and economic conditions may cause an increase in demand for retiree homes in their areas throughout the next year.
Over the past couple of years, since home prices have declined significantly in what is known as markets with traditional appeal to retirees, such as Florida, Arizona or Texas. Younger retirees are taking advantage of these more affordable prices and turning the economic downturn into an opportunity.
While the survey indicates that this is emerging trend across the country, driving factors seem to vary regionally. For example, Coldwell Banker real estate professionals in South Florida finds pre-retirees taking real estate-related steps now to support longer-term goals. Many individuals not yet ready to retire are purchasing these homes and leasing/renting them until they are prepared to move permanently, I have been working with several folks myself who are saying the same thing. They will be retiring in about 3-5 years. Some are interested in buying the land that they can hold until they are ready to build.
Is Lifestyle the reason why so many choose to move to warmer climates? In Florida we have 300 days of sunshine. With the price corrections we have experienced, many individuals who are at or near retirement are realizing this is a great opportunity for them. Some buyers who have lost their jobs, taken retirement packages or sold their businesses are accelerating their plans for retirement and taking advantage of the low mortgage rates and home prices. People who live in cities like New York City, Chicago or Washington, D.C. have never owned a home, and will be taking advantage of the $8000 First Time Homebuyer Tax Credit that ends in December of 2009. Others, who are already here, are moving up or downsizing again, based on their lifestyle. The kids are gone, the kids are back, the parents are moving in.
The top reasons retirees are buying or selling homes: # 1 reason is to live closer to their families.
- improvements in housing conditions, such as buyer-friendly home prices and interest rates.
- an increase in retirees who plan to downsize from their primary residences into smaller properties.
- retirees who own more than one property sell their primary residences to move to their secondary homes.
- more people buy different homes for retirement, or move into their previously purchased retirement properties earlier than expected.
If you would like a market snapshot of our area along the Emerald Coast of Florida, let me know.
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