Seniors Are on the Move in the Real Estate Market

Seniors Are on the Move in the Real Estate Market

Presented as a public service by Joe Peters of Coldwell Banker

Did you know August 21st is National Senior Citizens Day? According to the United States Census, we honor senior citizens today because,

 “Throughout our history, older people have achieved much for our families, our communities, and our country. That remains true today and gives us ample reason…to reserve a special day in honor of the senior citizens who mean so much to our land.

To give proper recognition, we’re going to look at some senior-related data in the housing industry.

According to the Population Reference Bureau,

The number of Americans ages 65 and older is projected to nearly double from 52 million in 2018 to 95 million by 2060, and the 65-and-older age group’s share of the total population will rise from 16 percent to 23 percent.”

Seniors Believe in Homeownership

In a recent report, Freddie Mac compared the homeownership rates of two groups of seniors: the Good Times Cohort (born from 1931-1941) and the Previous Generations (born in the 1930s). The data shows an increase in the homeownership rate for the Good Times Cohort because seniors are now aging in place, living longer, and maintaining a high quality of life into their later years.Seniors Are on the Move in the Real Estate Market | MyKCMThis, however, does not mean all seniors are staying in place. Some are actively buying and selling homes. In the 2019 Home Buyers and Sellers Generational Trends Report, the National Association of Realtors® (NAR) showed the percentage of seniors buying and selling:Seniors Are on the Move in the Real Estate Market | MyKCM

Here are some highlights from NAR’s report:

  • Buyers ages 54 to 63 had higher median household incomes and were more likely to be married couples.
  • 12% of buyers ages 54 to 63 are first-time homebuyers, 5% (64 to 72), and 4% (73 to 93).
  • Buyers ages 54 to 63 purchased because of an interest in being closer to friends and families, job relocation, and the desire to own a home of their own.
  • Sellers 54 years and older often downsized and purchased a smaller, less expensive home than the one they sold.
  • Sellers ages 64 to 72 lived in their homes for 21 years or more.

Bottom Line

According to NAR’s report, 58% of buyers ages 64 to 72 said they need help from an agent to find the right home. The transition from a current home to a new one is significant to undertake, especially for anyone who has lived in the same house for many years. If you’re a senior thinking about the process, let’s get together to help you make the move as smoothly as possible.


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What to Consider When Choosing Your Home To Retire In

What to Consider When Choosing Your Home To Retire In

Presented as a public service by Joe Peters of Coldwell Banker

As more and more baby boomers enter retirement age, the question of whether they should sell their homes and move has become a hot topic. In today’s housing market climate, with low available inventory in the starter and trade-up home categories, it makes sense to evaluate your home’s ability to adapt to your needs in retirement.

According to the National Association of Exclusive Buyers Agents (NAEBA), there are 7 factors that you should consider when choosing your retirement home.

1. Affordability

“It may be easy enough to purchase your home today but think long-term about your monthly costs. Account for property taxes, insurance, HOA fees, utilities – all the things that will be due whether or not you have a mortgage on the property.”

Would moving to a complex with homeowner association fees actually be cheaper than having to hire all the contractors you would need to maintain your home, lawn, etc.? Would your taxes go down significantly if you relocated? What is your monthly income going to be like in retirement?

2. Equity

“If you have equity in your current home, you may be able to apply it to the purchase of your next home. Maintaining a healthy amount of home equity gives you a source of emergency funds to tap, via a home equity loan or reverse mortgage.”

The equity you have in your current home may be enough to purchase your retirement home with little to no mortgage. Homeowners in the US gained an average of over $9,700 in equity last year.

3. Maintenance

“As we age, our tolerance for cleaning gutters, raking leaves and shoveling snow can go right out the window. A condominium with low-maintenance needs can be a literal lifesaver, if your health or physical abilities decline.”

As we mentioned earlier, would a condo with an HOA fee be worth the added peace of mind of not having to do the maintenance work yourself?

4. Security

“Elderly homeowners can be targets for scams or break-ins. Living in a home with security features, such as a manned gate house, resident-only access and a security system can bring peace of mind.”

As scary as that thought may be, any additional security is helpful. An extra set of eyes looking out for you always adds to peace of mind.

5. Pets

“Renting won’t do if the dog can’t come too! The companionship of pets can provide emotional and physical benefits.”

Consider all of your options when it comes to bringing your ‘furever’ friend with you to a new home. Will there be necessary additional deposits if you are renting or in a condo? Is the backyard fenced in? How far are you from your favorite veterinarian?

6. Mobility

“No one wants to picture themselves in a wheelchair or a walker, but the home layout must be able to accommodate limited mobility.”

Sixty is the new 40, right? People are living longer and are more active in retirement, but that doesn’t mean that down the road you won’t need your home to be more accessible. Installing handrails and making sure your hallways and doorways are wide enough may be a good reason to look for a home that was built to accommodate these needs.

7. Convenience

“Is the new home close to the golf course, or to shopping and dining? Do you have amenities within easy walking distance? This can add to home value!”

How close are you to your children and grandchildren? Would relocating to a new area make visits with family easier or more frequent? Beyond being close to your favorite stores and restaurants, there are a lot of factors to consider.

Bottom Line

When it comes to your forever home, evaluating your current house for its ability to adapt with you as you age can be the first step to guaranteeing your comfort in retirement. If after considering all these factors you find yourself curious about your options, let’s get together to evaluate your ability to sell your house in today’s market and get you into your dream retirement home!

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Charting the Growth of Renters Over the Age of 60

Charting the Growth of Renters Over the Age of 60

Presented as a public service by Joe Peters of Coldwell Banker

Cities in the South have seen a marked uptick in the share of households with renters aged 60 or over in the past decade.

Recent research from RentCafe illustrates that with the average age of Americans creeping upward, the share of renters aged 60 or older has risen dramatically in the past decade in many cities.

According to RentCafe:

Our top 30 oldest cities all have a median age over 39.6 and are mostly retirement cities in Florida, California, or Arizona. In fact, Florida is home to 12 of the oldest cities, with Cape Coral, first in our top, boasting a median age of 47.9, followed by Hialeah, with 46.5. Sunny Scottsdale, AZ is third in our top, with a median age of 46, proving once more its high popularity among retirees in search of warm days and entertainment.

The research also found that renter households aged 60 and over drove the past decade’s surge in renters, with a 43 percent increase, from 6.55 million to 9.37 million in 2017, greatly outpacing younger age groups. Those aged 35 to 59 grew by 17 percent from 16.33 million to 19.11 million, while renters aged under 35 posted the slowest increase rate of 7 percent, rising from 13.99 million to 14.90 million.

According to the firm:

According to our projection based on the trend witnessed between 2007 and 2017, we expect the year 2035 will mark a major demographic shift with the share of 60+ renter households reaching somewhere around 31% and becoming the second highest share among all age groups. Despite being the majority, those aged between 35 and 59 will likely see a decrease in their share of renter households, dropping from 44% in 2017 to an estimated 43% in 2035.

The following gallery features a list of the 25 cities and how the share of renters aged 60 or older has risen over the past 10 years. In addition, the there is data on the total number of 60+ renters as well as the shares of 34-59 renters and 34 and under renters and the median age of all renters in each city.

 


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A 50+ Home for the Next 50

A 50+ Home for the Next 50

Flexible design, health focus, sustainability and technology create a whole new kind of aging in place.

Reposted from Builderonline.com

According to a 2016 Freddie Mac survey, more than 18 million people 55 and older are going to be in the market for a new home in the next few years. This supports data from KB Home’s exclusive market survey data that finds a jump of 11 percentage points in 55+ buyers of both new and resale homes in our markets over the last decade. But today’s older buyers are worlds apart from previous generations and so is their dream home. That’s why we chose to focus our new KB Home ProjeKt on the 50+ home of the future.

“ProjeKt is a 50+ home for the next 50,” said Dan Bridleman, senior vice president of sustainability, technology and strategic sourcing for KB Home. “This isn’t your father’s retirement. People are living longer, working longer, having children later, creating flexible new family structures and work lives. And they want a home that reflects that.”

Inspired by the huge leaps we’ve seen in this market over the last few years, the new ProjeKt envisions and demonstrates how a new concept of home can offer an entirely different way to look at 50+ living, one that integrates health, sustainability and technology-driven innovation into a home that supports holistic wellness for both its residents and the environment.

The Gig Economy Isn’t Just for Twentysomethings

More workers of every age are earning their living as freelancers, or supplementing their income with gig-economy jobs to earn additional money for retirement. More than one in three workers currently are freelancers and of those freelancers over 55, 49% are using supplemental work to help fund their retirement, according to a 2018 Betterment report on the Gig Economy and the Future of Retirement. In addition, workers today are much more likely to transition into retirement with freelance work and small businesses instead of just throwing the switch one day on a traditional retirement. A recent Gallup poll found that 41% of workers today plan to work past the age of 65, up from just 12% in 1995.

The ProjeKt home reflects this new reality with flexible spaces that are ideal for a home office or yoga room during the day and an entertainment area at night, making the same square footage do double duty in an efficient, thoughtfully designed way. These same spaces can later be adapted to become an additional bedroom for an adult child, elderly parent or caretaker.

Supporting Shifting Family Structures and Needs

The home of the future has to be flexible, particularly for today’s 50+ buyer who may pack a lot of life stages into their years in their home. More homes today have multiple generations living under one roof, whether older relatives who may be helping with children or adult children returning home while making career or life transitions, or any number of other family configurations. The KB Home ProjeKt is designed as a traditional two-story family home that can accommodate any number of family configurations. But the innovative ProjeKt design also allows for literal “downsizing” within your existing home, with a second floor that is designed to be easily separated into an independent unit that’s ideal for adult children, older relatives, live-in caretakers, or even short- or long-term rental income.

Today’s 50+ Buyer Wants Connection Not Restriction

ProjeKt is not designed for the buyer looking for typical age-restricted communities. It’s for the buyer who wants to be part of a thriving community that includes strong connections with their neighbors of all ages.

“When we hold focus groups, many 50+ buyers tell us that they don’t like age-restricted communities. They say it feels like high school, just 40 years later,” said Bridleman. “Today’s 50+ population wants to be a part of life, not apart from it. They’re looking for connection and community — and that spans generations.”

Inspirada, a master plan community in the Las Vegas area and home to the KB Home ProjeKt, is a great example of this trend.

“Our Inspirada community, for example, is located near an age-restricted community and we actually have multiple sales from buyers literally driving away from those restrictions. They’ve stopped by our community on the way out and found what they’re looking for in a thriving community that spans all ages,” said Jen Haack, KB Home’s senior manager of strategic marketing for the Las Vegas division.

KB Home is all about relationships. The relationships between builder and buyer, homeowner and home, home and community, neighbor and neighbor. That spirit and commitment are reflected in the design of the ProjeKt community. ProjeKt is more than a single home; it is part of a larger virtual community designed to support this new vision of future living and greater inter-connectedness to serve as an antidote to today’s increasingly isolated lifestyles.

Redefining Home Health Care

Every day we are learning more about how important our living environments are to our health. In fact, the U.S. Centers for Disease Control and Prevention (CDC) has concluded that physical and social environments are the largest determinants of our health. Having a home that supports long-term health is going to be increasingly important to all home buyers in the future, but in particular the 50+ buyer who is likely to spend more hours in their home as they wind down their work life outside the home. The KB Home ProjeKt is designed to actively promote health with restorative and rejuvenating features, from circadian lighting that promotes sleep and greater mental health to biophilic design elements that bring nature into daily living. In addition, a suite of technology-driven connected capabilities create an innovative health partnership between homeowner and home and greater control, comfort, safety and independence for the years to come.

All of these features are creating where tomorrow lives for the 50+ home buyer of the future and inspiring how we serve the evolving needs of today’s 50+ home buyer. KB Home, its innovations collaborators, and its partners at Builder and Hanley Wood are unveiling the 2019 KB Home ProjeKt in Las Vegas in February 2019. Sign up here to receive updates as we continue to share more details and sneak previews of the home in-progress.

 

 


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Will Your Current House Fit Your Needs in Retirement?

Will Your Current House Fit Your Needs in Retirement?

 

As more and more baby boomers enter retirement age, the question of whether or not to sell their homes and move will become a hot topic. In today’s housing market climate, with low available inventory in the starter and trade-up home categories, it makes sense to evaluate your home’s ability to adapt to your needs in retirement.

According to the National Association of Exclusive Buyers Agents (NAEBA), there are 7 factors that you should consider when choosing your retirement home.1

1. Affordability

“It may be easy enough to afford your home today but think long-term about your monthly costs. Account for property taxes, insurance, HOA fees, utilities – all the things that will be due whether or not you have a mortgage on the property.”

Would moving to a complex with homeowner association (HOA) fees actually be cheaper than having to hire all the contractors you would need to maintain your home, lawn, etc.? Would your taxes go down significantly if you relocated? What is your monthly income going to be like in retirement?

2. Equity

“If you have equity in your current home, you may be able to apply it to the purchase of your next home. Maintaining a healthy amount of home equity gives you a source of emergency funds to tap, via a home equity loan or reverse mortgage.”

The equity you have in your current home may be enough to purchase your retirement home with little to no mortgage. Homeowners in the US gained an average of over $16,300 in equity last year.

3. Maintenance

“As we age, our tolerance for cleaning gutters, raking leaves and shoveling snow can go right out the window. A condominium with low-maintenance needs can be a literal lifesaver, if your health or physical abilities decline.”

As we mentioned earlier, would a condo with an HOA fee be worth the added peace of mind in knowing that you do not have to do the maintenance work yourself?

4. Security

“Elderly homeowners can be targets for scams or break-ins. Living in a home with security features, such as a manned gate house, resident-only access and a security system can bring peace of mind.”

As scary as that thought may be, any additional security and an extra set of eyes looking out for you always adds to peace of mind.

5. Pets

“Renting won’t do if the dog can’t come too! The companionship of pets can provide emotional and physical benefits.”

Evaluate all of your options when it comes to bringing your ‘furever’ friend with you to a new home. Will there be necessary additional deposits if you are renting or moving in to a condo? Is the backyard fenced in? How far are you from your favorite veterinarian?

6. Mobility

“No one wants to picture themselves in a wheelchair or a walker, but the home layout must be able to accommodate limited mobility.”

Sixty is the new 40, right? People are living longer and are more active in retirement, but that doesn’t mean that down the road you won’t need your home to be more accessible. Having to install handrails and make sure that your hallways and doorways are wide enough may be a good reason to look for a home that was built to accommodate these needs.

7. Convenience

“Is the new home close to the golf course, or to shopping and dining? Do you have amenities within easy walking distance? This can add to home value!”

How close are you to your children and grandchildren? Would relocating to a new area make visits with family easier or more frequent? Beyond being close to your favorite stores and restaurants, there are a lot of factors to consider.

Bottom Line

When it comes to your forever home, evaluating your current house for its ability to adapt with you as you age can be the first step to guaranteeing your comfort in retirement. If after considering all these factors you find yourself curious about your options, let’s get together to evaluate your ability to sell your house in today’s market and get you into your dream retirement home!

 


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