Over half of those who work in popular retirement areas
are seeing younger retirees (ages 60 and under) looking to purchase homes in their
markets.
Furthermore, 43 percent of all the sales associates and brokers surveyed believe
market and economic conditions may cause an increase in demand for retiree homes
in their areas throughout the next year.
“Over the past couple of years, home prices have declined significantly
in the majority of markets with traditional appeal to retirees,” said
Jim Gillespie, president and chief executive officer of Coldwell Banker Real
Estate LLC. “Younger retirees are taking advantage of these desirable
prices and turning the economic downturn into an opportunity.”
While the survey indicates that this is emerging trend across the country,
driving factors seem to vary regionally. For example, anecdotal feedback from
Coldwell Banker real estate professionals in South Florida finds pre-retirees
taking real estate-related steps now to support longer-term goals. “Many
individuals not yet ready to retire are purchasing these homes and leasing them
until they are prepared to move permanently,” said Elaine Harari of Coldwell
Banker Residential Real Estate in Bay Harbor Islands, Fla.
In desirable areas with low property taxes, such as northeast Arkansas, it’s
more common for younger retirees to move from more expensive cities; some even
taking jobs for which they can telecommute to save money. Additionally, Coldwell
Banker professionals in Michigan note that some retirement communities are experiencing
an influx of former automobile company employees who have received early retirement
packages.
Andrew Brearley, president of Coldwell Banker First Affiliate in Sedona, Ariz.
reports a recent increase in sales volume. “Lifestyle is certainly the
reason why so many choose to move to Sedona. We have 360 days of sunshine. With
the 30 percent price corrections we have experienced, many individuals who are
at or near retirement are realizing this is a great opportunity for them. Some
buyers who have lost their jobs, taken retirement packages or sold their businesses
are moving up their plans for retirement and taking advantage of the low mortgage
rates and home prices. Others, who are already here, are moving up.”
The Coldwell Banker real estate professionals surveyed offered their perspectives
on the top reasons retirees are buying or selling homes, and 33 percent said
the No. 1 reason retirees are moving right now is to live closer to their families.
Interestingly, 12 percent cited improvements in housing conditions, such as
buyer-friendly home prices and interest rates, as the key drivers.
Other results from the overall survey include:
* 53 percent of Coldwell Banker real estate professionals have observed an
increase in retirees who plan to downsize from their primary residences into
smaller properties.
* 37 percent are seeing an increased number of retirees who own more than one
property sell their primary residences to move to their secondary homes.
* 23 percent are seeing more people buy different homes for retirement, or move
into their previously purchased retirement properties earlier than expected.