Many Boomers Now Ready To Downsize As They Focus More On Quality Of Life



In the current real estate market there are 3 main types of buyers.  Millennials, who are now making up the largest group of home buyers.  Boomerang buyers, which are buyers who lost their homes during the recession and are now financially able to once again become homeowners.  Finally Empty Nesters, these are baby boomers who are now living in a large home that is much larger then needed with all of their kids grown and moved out.  

Over the last several years, baby boomers have undergone a metamorphosis. With their children have moved out they can now dream about their own future. (Often sidetracked as the kids move back home.  But, this is another blog I will have to write later).  For many, a change in lifestyle might necessitate a change in the type of home they live in.
That two-story, four-bedroom colonial with three bathrooms no longer fits the bill. Taxes are too high. Utilities are too expensive. Cleaning and repair are too difficult. When they decide to travel to be with friends and family, locking up the house is too time-consuming and worrisome.

Instead, a nice ranch home with 2-3 bedrooms and two baths might better fulfill their new needs and lifestyle. The challenge many “boomers” have faced when trying to downsize to the perfect new home has been a lack of inventory.  Even with new construction, most builders prefer to build large "McMansions" to gain better profits by increasing square footage on small subdivision lots where homes are often just a few feet away from each other.  That combined with the average number of years a family stays in their home increasing by fifty percent since 2008, causing fewer houses to come to the market.

However, that is starting to change. 

According to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, sales of newly built, single-family homes rose to a seasonally adjusted annual rate of 692,000 units in March. The great news is that more of those homes were sold at the lower end of the price range.

In a press release last week, the National Association of Home Builders (NAHB) explained that:
“The median sales price was $302,700, with strong gains in homes sold at lower price points. The median price of a new home sale a year earlier was $335,400.”
NAHB Chief Economist Robert Dietz offered further detail:
“We saw a large gain at lower price points where demand is strong. In March of 2019, 50% of new home sales were priced below $300,000, compared to 39% in March of 2018.”
If you are a “boomer” thinking of selling your house in order to buy a new home that better fits your current lifestyle, now may be the perfect time!

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