Is Now the Time to Buy a Retirement Home in Charlotte NC?
What is the magic age for retirement?
When you hit that 50+ age, it seems statistics about age jump off of the page as though they are targeted directly at you! Today, reading a Keeping Current matters article, I was, once again, reminded of that. Did you know that every day in the US, roughly 10,000 people turn 65. That number is expected to more than double by 2050 with approximately 20% of the population being 65 and over then. At my age, that is staggering/sobering statistic!
Prior to the 2020 pandemic, most people waited until they retired to make a move to the beach, the golf course, lake or even their favorite senior living community. Plans for settling in for the later years in life were pushed to the very end of work careers. Speaking as a baby boomer who shifted priorities, this year, the game changed for many pre-retirees.
The new age of working remotely
The ability to work remotely is expanding homeowners’ geographic options and driving their motivation to buy those dream homes/locations now, rather than waiting to pursue their dreams. If the links or the sun and the water are calling your name and you have the ability to work remotely for the foreseeable future, now may absolutely be a great time to purchase that lake bungalow you’ve always dreamed of or that ranch home in the sprawling countryside. Whether it’s a second home or a future retirement home, spending the next few years in a place that truly makes you smile every day might be the best way to build upon and in the end, round out a long and meaningful career.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
“The pandemic was unexpected, working from home was unexpected, but nonetheless many companies realized that workers can be just as productive working from home…We may begin to see a boost in people buying retirement homes before their retirement.”
According to the 20th Annual Transamerica Retirement Survey, 3 out of 4 retirees (ages 50+) own their homes, and only 23% have mortgage debt (including any equity loans or lines of credit). Since entering retirement, roughly 38% have moved into a new home. They’re selling their current homes at a profit in today’s low inventory market and using their equity to purchase their future retirement homes. It’s a win-win.
Why Boomer Homeowners Are Making Moves Now
The pandemic this year made us all more aware of the importance of our family and friends, and many of us have not seen our extended families since the pandemic started. It’s no surprise, therefore, to see in the same report that 32% of those surveyed cited the top reason they’re making a move is that they want to be closer to family and friends (See graph below):
The survey also revealed that 73% percent of retirees currently live in single-family homes. With the overall number of homes for sale today hitting an historic low, and with the buyer demand for single-family homes skyrocketing, there’s never been a more ideal time to sell a single-family home and make a move toward retirement. Conversely, and a topic for another article that stems from the pandemic, many people are moving away from the ‘tighter’ city living and to those single family homes in the nearby suburbs. Today’s market is the perfect combination of driving forces to make selling optimal for retirees, especially while buyers are looking to take advantage of historically low interest rates and baby boomers facing less competition in compact living the city offers.
If you’re one of the 73% of retirees with a single-family home and want to move closer to your family, now is a great time to put your house on the market. With the pace homes are selling today, you could essentially wrap up your move – start to finish – before the holidays.
Whether you’re looking to fully retire or to buy a second home with the intent to use it as your retirement home in the future, the 2020 fall housing market may very well work in your favor. Let’s talk about your options in our local market. Call or text me at (704) 491-3310
© Debe Maxwell | The Maxwell House Group | RE/MAX Executive | CharlotteBroker@icloud.com | Is Now the Time to Buy a Retirement Home in Charlotte?