Since we are not all psychic, there is no way to predict the future of the real estate/housing market. The “Baby Boomer” generation is a great indicator of financial trends, as their spending habits have been researched quite heavily over the years. Americans over the age of 55 are veering from previous generations, opting not to retire, but instead launching 2nd or even 3rd careers. They are shunning the traditional patterns of retirement, and that could have a big impact on their housing choices, thereby affecting the entire housing market.
Baby boomers are defined as “Americans born during the demographic post–World War II baby boom, approximately between the years 1946 and 1964.” They make up 1/4 of the population of the US and control about 2/3 of the single-family home equity in the nation! See why they are so important? Sixty-five-year olds who, on average purchased a home 35 years ago now tend to have a home value that is likely 3.7 times the purchase price.
Nearly 1/4 of baby boomers recently surveyed by Freddie Mac say they need major renovations in their current home in order to stay there as they age – and many say they face financial constraints to take on those remodels. The financial costs of outfitting their home with age-in-place features average $25,000-$50, 000.
As a result, about 18 million homeowners over the age of 55 may be shopping for another house in the next few years, according to the Insights Report. Unlike earlier generations, however, baby boomers' main reasons to move aren't due to downsizing. Instead, the survey showed the key influences making these generations move are: affordability of the community, the need for retirement amenities and a home with less maintenance.
Bottom line, the 55-plus population is likely to be an active part of the housing economy for years to come, and that is a great thing! If you are reading this and you or anyone else you know is ready, willing and able to purchase a new home/condo in the Pensacola area, please feel free to call/text or email me and I will be more than happy to assist you through the process.
Make it a great day!
Mandi K Willis, Realtor (904) 755-4795 cell / (850) 473-3983 office
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