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New and Almost-Retirees Ages 60 and Younger are Purchasing Homes Now

By
Real Estate Agent with RE/MAX Coastal Properties

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.

Karen Butler Realtor

 
Posted by

 karenbutler realtor      Karen Buter, Realtor

             850-830-8780

Karen@KarenButler.com

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Colleen Lane
Kennewick Richland (and West) Pasco WA Homes For Sale - Kennewick, WA
Realtor(r) 509.438.9344 www.LaneRealEstateTeam.com

I like hearing news like this.  Any housing stimulus is good housing stimulus!  :)

Apr 14, 2009 03:34 AM
Amanda Wilson
EWM International Realtors, Inc. - Fort Lauderdale, FL
Real Estate Advisor

thanks Karen!  Interesting...

Apr 14, 2009 03:34 AM
Norma Brandsberg
Marks Realty Co. Inc., Lynchburg, VA, 540-586-9496 - Forest, VA

I am not surprised at the information. Older folks are capable of seeing the trends.

Apr 14, 2009 03:54 AM
Roy Kelley
Retired - Gaithersburg, MD

Age 62+ buyers can now use a Reverse Mortgage to purchase a new primary residence and never have a mortgage payment. Perfect for the seniors with lots of equity in the old home they are selling but with limited income.

Apr 14, 2009 04:03 AM
Scott Guay
Berkshire Hathaway Home Services PenFed Realty - Ocean Pines, MD
Associate Broker. Ocean City and Ocean Pines MD

Here in Ocean City Maryland we have a lot of buyers coming from a wide range of areas from VA, PA and NJ.  All are within several hours from their #1 goal of staying close to family and still have a great place for active retirement.

Apr 14, 2009 04:52 AM
Karen Butler
RE/MAX Coastal Properties - Fort Walton Beach, FL
Eglin AFB/ Fort Walton Beach /Destin Relocation

Hey the more we the professionals realize this trend, the more we can spread the word. We have to be able to walk the talk.  There is so much negativity coming out of the Boob Tube, that I send out post cards to my clients and sphere that said "nobody, on CNN, HNN, or Fox & Friends has a real estate license"! And not one of them is familiar with Fort Walton Beach-- But I do and I am!

So there!

Apr 14, 2009 05:09 AM