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By
Real Estate Agent with RE/MAX Crosstown Realty Inc

Front line Baby Boomers must be getting tired of the bombardment of not-so-subtle reminders that they are edging ever closer to their retirement years. Seems like overnight commercials went from trying to coax them out of that Jello tree to trying to woo them into a new side door step in bath tub and a bevy of performance enhancing pills. I know I have endured far more than my fill of  TV commercials that feature happy-go-lucky Silver haired couples skipping slow-mo, hand in hand through sun drenched meadows of wild flowers!!! (I needed to vent on that.)

Looking to the future of real estate and how the market will evolve based on demographics and population forecasts - then pro actively positioning yourself for these changes is how some will manage to come out far ahead of others who pay no attention. I came to a realization I must share with you. It is simple yet sound financial reasoning, and those who act will profit by and be grateful for this advice.

At some point in life after the kids have moved out into the world many home owners find stairs becoming more difficult to handle and the desire for a one level lifestyle is more predominate. Statistically that is the point when most make the decision to sell the 3-4 bdrm two story home often to move to a condo or bungalow. That shift is taking place right now at greater numbers than any point in history across North America.


Based on housing demand forecasts, over the next 10 years a bungalow in Ontario (and your market too no doubt) is likely to appreciate as much as 30% to 50% beyond what a two story home equal to it in price today will appreciate over that same time frame, This is the direct result of increasing demands for single level housing, demands that out strip supply. If your scenario fits, apply the appropriate math using your current property value to see what this could mean in potential dollars to you.

Those who have the foresight will sell the two story home and buy the inevitable bungalow now at todays prices. That amount of increase we spoke of over 10 years is then equity earned by you over that time time rather than becoming the additional amount needed to buy later. Money that would likely be taken from your life savings or by borrowing at a time when most are hoping to have more disposable income.

Demand for bungalows is only going to increase as that wheat field continues to fill with slower moving couples. Something to think about.

gimmeshelter.ca BarrieRealEstateBlog.com HotBarrieListings.com BarrieHomeworth.com mikemontague.com

Posted by

 Mike Montague

  

Barrie Power of Sale Listings

Barrie home values

 

 

Comments (3)

R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Excellent post!  I don't know about your appreciation figures, but I would agree that homes with limited stairs will become more in demand as time goes on with the greying of the population.  You could be right though???

 

Bob Mitchell

ValueList Real Estate Services, Inc. 

Jun 12, 2007 03:48 AM
Mike Montague
RE/MAX Crosstown Realty Inc - Barrie, ON
"Who Moves You?"
My price appreciation senario makes sense when you consider most builders can reap more from an acre of land by building two story homes than they can by building bungalows which require larger lots for the same square footage of home. Until home styles are regulated you will likely see a continuation of that trend
Jun 12, 2007 03:57 AM
Jo-Anne Smith
Oakville, ON

Mike , I have already noticed that trend beginning here in the Belleville area. Two-storey homes did not appreciate here in the past year. They are selling for virtually the same they were selling for last year and sometimes less.  The bungalows however, have risen at least 10 % and in some cases more.  The demand for bungalows outstrips the supply here.

Thanks for the great post and advice.

Jo 

Jun 12, 2007 07:19 AM