New Trend In Real Estate

The newspaper and national real estate speakers are talking about the new trend in Real Estate.  It was first called the “Age Wave” and now it is being referred to by experts as the “Senior Tsunami.”  Undoubtedly, the next big shift in the real estate industry is going to be largely impacted by our aging population.  And the first wave has already begun to sweep the nation.   The first time buyer used to push our market but that buyer is having a hard time qualifying and buying.

“We (baby boomers) are the wealthiest consumer segment in the housing market.  We have money to buy homes if we can sell our home at what we think it is worth, and that is also improving,” states a housing researcher, John Sheleimer.

FACTS:
• One in eight Americans are currently 65 years or older.
• In the next 20 years the senior population is projected to double in size.
• Aging seniors are projected to move out of an estimated 11.3 million housing units between 2010 and 2020.
• 65% of senior homeowners own their home free and clear of any liens.

While some senior adults will choose to age in place, a staggering number of them will have no choice but to move into housing that better suits their physical, financial, and emotional needs. When this flood of older generation homeowners begins to relocate, they and their caregivers (adult children) will be looking to their trusted advisor in Real Estate for guidance and expert advice, and who better than the Magee Team?
 

Another trend is that the older buyers are less interested in the huge “retirement” communities that were developed in the past but are looking more for smaller age-restricted subdivisions close to traditional housing.  The over 55 buyer still wants amenities such as walking trails, pools, clubhouses, fitness centers and not necessarily limited to the smaller square footage since they have so much “stuff” they don’t want to get rid of. 

Some of us have been thinking about moving as we are in the situation that we have just mentioned.  If so, we would be happy to have a consultation to see if this is the time or not to make that move. 

 

Give us a call. 

Thanks,

Betty

 

I Want a Bigger/Nicer Home but...

There are homeowners that would like to have a larger/nicer home but are patiently waiting for the market to improve. A frequently heard objection is that they can't sell their home for what it is currently worth.

Buying up in a down market is actually advantageous because while you might get less for the home you're selling, you're also getting the larger home for less. For instance, if you had to sell a $200,000 home for a 10% discount, you might feel that you left $20,000 on the table. However, buying a $300,000 for the same 10% discount would put you $10,000 ahead on the sale and purchase.

The other obvious matter is that when the mortgage rates increase while you're waiting for the market to improve, it dramatically increases your cost of housing with higher payments. The cost of housing is affected by price and mortgage rates.

To accurately evaluate your current options, you need facts and assessment tools that will provide you the information to make an informed decision.

Can You Afford To Buy a House?

Home affordability continues to rise. If fact, it has returned to pre-bubble levels in a growing number of U.S. markets over the past year as price declines laid the groundwork for a housing recovery.

Home values in the United States posted their largest quarterly decline since the first quarter of 2009, falling 2.6 percent as the temporary stimulus of the home buyer tax credits wore off, according to Zillow.com. Data provided by Moody's Analytics track the ratio of median home prices to annual household incomes in 74 markets. By that measure, housing affordability at the end of September had returned to or surpassed the average reached between 1989-2003 in 47 of those markets. Of course Texas has been one state that we have been flat in our prices and have always been a great priced housing market in which to buy. We still are a good buy. See Collin County's Affordability Index by clicking here.

"During the boom, lax lending and speculation pushed house-price inflation far beyond the modest rise in household income. Nationally, the ratio of home prices to annual household income reached a peak of 2.3 in late 2005. But by last September, it had fallen to 1.6, matching the lowest level in the 35 years the data have been collected and well below the historical average of 1.9 between 1989 and 2003."

"Based on incomes, this is as affordable as it gets," said Mark Zandi, chief economist at Moody's Analytics. "If you can get a loan, these are pretty good times to buy."

Are Home Prices Slipping?

Again, another article came out of the Dallas Morning News suggesting that the average house price in Dallas is slipping to what it was last month and last year. I’m still not seeing that in the monthly statistics for our cities up here north, Allen, Frisco, Plano, and McKinney. (Click here to see the statistics that we have put together for our northern cities.)

Home affordability is still high with prices flat and interest rates low. That is what will be hard to beat in the coming months and years. To have this combination is very difficult! Our rates are the lowest in history. More people are refinancing which does stabilize the market which lowers their payment in most cases and they can remain in their homes rather than selling and moving down in harder times.

National Association of Home Builders states in their recent study that 72.1 percent of all new and existing homes sold in the third quarter of 2010 were affordable to families earning the national median income of $64,400.

So don't really see prices dropping in our North Dallas area!

Are Home Prices Slipping?

Again, another article came out of the Dallas Morning News this past week suggesting that the average house price in Dallas is slipping compared to what it was last month and last year. I’m still not seeing that in the monthly statistics for our cities up here north, Allen, Frisco, Plano, and McKinney. (Click here to see the statistics that we have put together for our northern cities.)

Home affordability is still high with prices flat and interest rates low. That is what will be hard to beat in the coming months and years. To have this combination is very difficult! Our rates are the lowest in history. More people are refinancing which does stabilize the market in the long run since refinancing lowers their payment in most cases and they can remain in their homes rather than selling and moving down in hard times.

National Association of Home Builders states in their recent study that 72.1 percent of all new and existing homes sold in the third quarter of 2010 were affordable to families earning the national median income of $64,400.