55+ Real Estate Market Booming

While many in the real estate profession have been busy wringing their hands over when millennials will get into the housing market, there is a solid segment of homebuyers and renters who have been quietly supporting the market on their end: those 55 years of age and over. With many baby boomers looking for retirement homes or downsizing now that their children are out of the house, this demographic has
been spurring increased single-family and multifamily starts for the past year.

According to the National Association of Home Builders (NAHB)'s 55+ Housing Market Index (HMI), builder sentiment is more confident in the 55+ market now than it has been at any time since the 2008 crisis. The organization surveys builders on their current sales levels, numbers of prospective buyers they're seeing and their predictions about sales for the next six months. Confidence in all of those areas increased substantially in 2014, and future predictions are equally as optimistic.

This market may have been encouraged by the recovery of home prices over the past few years. Now that baby boomers can actually receive as much or more as they spent on their home by selling it, more of them are deciding to sell and reenter the market in order to downsize or relocate.

"We are seeing more consumers actually make the decision to buy a new home as they are able to sell their current home at an acceptable price. We are busier now than ever before. And I don't think it's going to slow down anytime soon," NAHB 50+ Housing Council chair Steve Bomberger told Consumer Affairs.

If you are exploring financing options after selling your home, contact New Penn Financial today for information on the mortgage products we offer.

Sources:
http://www.consumeraffairs.com/news/real-estate-market-getting-a-lift-from-55-housing-012715.html
http://eyeonhousing.org/2015/02/builders-remain-confident-in-the-55-housing-market/

For more information, contact Ryan Hatleli (Branch Manager NMLS#174748) at New Penn Financial; (605) 877-3485; rhatleli@newpennfinancial.com; http://www.newpennfinancial.com/rhatltli