It’s A Seller's Real Estate Market For People 65 + Older
Buying or selling a home at any stage of life can be an intimidating endeavor, but it can be especially arduous for boomers and seniors approaching their most mature lives, particularly when striking while the iron is hot.
According to Harvard University’s 2019 Housing Report, “Over the next two decades, the growing population in the oldest age groups will lift the share of all US households age 65 and over from 26 percent in 2018 to 34 percent in 2038.” We’re in a time where the real estate market can’t keep up with the demands of buyers, which makes it an ideal time for sellers to consider letting go of their investment. We’ve tapped four of our Leverage Global Partners for reasons why you and your loved ones entering the latter stages in life should consider selling their real estate now.
When Demand Goes Up, Cost of Living Goes Up
Gina Guajardo of Sterling Johnson Real Estate has seen an uptick in older sellers in the Seattle metropolitan and suburban areas selling their real estate to find more affordable places to live. “Many sellers over 60 are cashing out, even older multifamily owners, as they don’t feel as connected to the area,” says Guajardo. “If you don’t have to live here because of your job or for the great school districts, consider cashing out and enjoying the equity your home has provided you.”
Making Money Moves
Mike Bui at EQ1 Real Estate in the Bay Area has also seen increased activity amongst boomers and seniors selling their real estate properties. “With Prop 19 being passed in California, sellers now have the opportunity to move their current property tax base anywhere in the state and take advantage of only paying the same property tax rate.”
“Boomers and seniors are seizing the opportunity to sell at a really good price, sometimes many times over what they originally paid for their homes, and moving to quieter areas, where they can buy in cash and still have a good nest egg for their future,” add Guajardo. “Some seniors see this opportunity to leave more wealth to their family one their time comes.”
Letting Go of Emotional Baggage
Bradley Marshall of Lot + Block Group at Compass in Dallas shares that many clients are “leaving the homes they’ve lived in for twenty-plus years, so there are emotional pulls during this time.” With this stressful change, boomers and seniors are opting for “the active adult community route –– moving into new areas to ease the struggle of creating a new social network in a new city where some might only know their family.”
There’s No Time Like the Present
Sarkis Ter-Minasyan at Craft & Bauer Real Estate says that most people he works with are “moving out of state, moving into a retirement community, or moving closer to their loved ones.” Marshall agrees, saying that “older generations are moving to be closer to family, move into a lower maintenance property conducive to a lock-and-leave lifestyle or travel.”
Our agents at Leverage Global Partners understand that every situation is different. While this market may not last forever, at some point the multiple offers and bidding wars will stop. If you’re considering selling your property and downsizing or looking to move closer to family, out-of-state or into a senior living community, any of our agents would be happy to help.
Images courtesy of Bradley Marshall, Sterling Johnston Real Estate, and EQ1 Real Estate.
