A new year is finally here, and the ideal time of year in Florida. Northerners flock to enjoy our mild temps and sunshine, traditionally making it a great time to sell your home. This year, however, may be an especially good time to list your house on the market and here is why.
The residential real estate market in the U.S. is having its biggest boom since 2006. We all recall just a few years later in 2008, the housing bubble burst, igniting a global recession. As we know, history tends to repeat itself but before this bubble bursts, seniors should consider taking advantage.
For seniors that have thought about moving to a continuing care retirement community (CCRC) or other type of senior living community, this could be the perfect time to list your home for sale as a number of factors converge to create an ideal sellers market. Let’s look at some of the reasons for this situation.
1. High demand, low supply
According to a recent Dow Jones article, despite the pandemic in 2020, sales of previously owned homes skyrocketed last year, reaching their highest level in 14 years, and many experts expect that trend to continue. Another big reason for the current boom is the low supply of existing homes for sale, causing prices to spike, with the median home purchase price exceeding $300,000 for the first time. According to data from the Federal Housing Finance Agency, home sale prices reached the largest annual increase since 1992.
2. Construction slowdown
Adding to the low supply issue and the resultant higher prices, new home construction hasn’t been able to keep up with demand as shortages of land, skilled labor, and materials hit homebuilders.
3. Low interest rates
Although mortgage rates have inched up recently, and experts expect them to continue to creep up this year, they are still extremely low. The Federal Reserve is forecasted to maintain ultralow interest rates until certain employment and inflation goals are met, which may not happen for quite a while given the state of the nation’s jobs market and overall economy. These low rates make it an attractive time for homebuyers to enter the market, increasing demand.
4. Nesting Millennials
The so-called “Millennials,” who were born between 1981 and 1996, are currently the largest living adult generation. Members of this group are now reaching their mid-20s to late-30s — prime years for settling down and purchasing a first home. Because the housing market is so under-supplied, these young homebuyers are vying for a limited number of homes, further driving up sale prices.
5. Pandemic fatigue
The pandemic also has contributed to the current real estate boom as some city-dwellers looked to escape crowded urban areas. With more people than ever working from home, many sought homes with more space in the suburbs.
So, how can seniors take advantage of this booming sellers’ market?
If you are a senior who is considering a CCRC or other senior living communities, you may have reasons to delay your move, but selling your home for a great price and in a timely fashion likely isn’t one of them. The above factors have created a dream situation for home-sellers, so why not take advantage before this bubble bursts.
As if high profits aren’t enough, consider the benefits that comes with a senior living community like St. Mark Village. We do it all at the Village – from housekeeping, on-site dining options, and wellness & life enrichment programs, to health care support and services should you ever need it in the future. Do you really want to mow the lawn, clean the house, and maintain a home forever? Give a final farewell to home maintenance worries and enjoy the good life you deserve. After a long two years, it’s time to refocus on you and your future at St. Mark Village this new year.
Looking to take the next step?
If you are considering selling your home, reach out to an experienced realtor to discuss the market in your specific geographic area and what price you might expect to garner from selling your home.
If you are considering a move to a CCRC or a senior living community, our friendly and knowledgeable counselors can provide any information you need to understand the entire process, from sell of home to move in day and beyond. Let St. Mark Village be your guide to the good life! Call 727-464-1750 today!
