Retirees Figure into the High End Real Estate Market
the Second World War, there was a baby boom between 1945 and 1965 in the
UK, US, Canada and Australia. This iconic term, baby boom is characterized
as Baby Boomers.A Baby boomer applied for social security in 2007 for
the first time indicating that there would be an onslaught of Baby Boomers
retiring in the next few years.Retiring persons think of their real estate
needs and those childless persons sell their homes in order to down size
to a condo, town house, apartment of retirement community.
Besides, many retirees have invested quite a bit of their money for upgrading,
and maintaining their homes specifically in strong economic areas. These
people have money to upgrade and improve their homes which can be sold
later for their equity. This is what Broderick Perkins, a writer for Realty
Times says about Santa Clara County, California the heart of Silicon Valley.
The median price of single family detached homes and condos in Santa Clara
County both rose $41000 in February according to the Bay Area Real Estate
Market News. Letter compiled by Richard Calhoun broker owner of Creek
Side Realty in San Jose.Prices of single family detached homes crossed
the $700000 mark with a $5000 tail wind. The new record of $705,000 median
is almost $140,000 more than it was a year ago.
that were sold in February, fifty percent of them, were on the market
for only seven days. In the Almaden Valley area in South San Jose there
was an increase of $55,000 in the median price form $855888 in January
to $91999 in February making the market as the regions next million
dollar home enclave currently, since January 2004 prices have increased
by $150,000. In the remaining two months home prices should increase by
$25,000 during each of the next two months to match the $200000 increase.
This would leave the median single family detached home price at 755000
in two months.This boom is related to the economy of the surroundings
area and its population shift that ensured. Many retirees in this specific
area were found to cash in their equity by selling their homes to those
with young families as schools around their homes are considered blue
ribbon. Retirees have no need to keep big homes with several bed
rooms and big yards. It was natural for them to cash in and move on.
investments, has much to do with retirees selling their homes and buying
smaller, manageable homes. A few have invested their dollars in more secure
areas which is short sighted. There are many desirable and enticing areas
of real estate in the country for retires and others to invest their money.
This is also available for Baby Boomer generation of retirees.
With their equity in their home and reasonable saving and investments,
these retirees can go in for high end condos and apartments when they
are ready to trade on their family home.
The present generation of retirees, are tremendous lovers of luxury.Location
of the property is the key factor for the Baby Boomer generation in investing.
Hawaii, for example has become one of the prime areas for retirees because
of its relatively lower property taxes and unbelievably luxurious standard
of living. Since last year, in some areas of Oahu, condo prices are up
by 46 %. It is on the market for only 40 days making it difficult for
buyers of decent property. The median price of condos in Oahu was $ 321000
With the inventory down for 10 month straight many investor envisage a
quick appreciation of property and a few have increased even list prices.
Hawaii real estate may be one of the only sellers market in the
country because of Baby Boomers and other retirees who sap up these properties.
A massive boom in Hawaii real estate would result even if 1/10 of 1% of
the Boomers moved to Hawaii to retire. It is a small island state with
about 1700 single family homes for sale at present in Oahu. Hence even
a few hundred buyers a year makes a massive difference in the market as
Tony Kawaguchi of ReMax Realty in Hawaii says.
Many fields of American economy will be altered and driven by the retiring
boomers and there will be a huge influx of them in desirable areas like
Hawaii for many years. An investment in Hawaii real estate can be a great
long term option for those eager for the next big opportunity.
Marketing for this generation of retirees, obsessed with luxury is a difficult
problem. They do not want to relieve their life with parents during the
Great depression and some deprivations in their child hood. Considering
their homes they want the best of the best and the Boomers have the money
to spend on them. For high end real estate developers this is the best
Caring for this generation and their variable needs is what smart investors
and developers should compulsorily do. While many on the lower end of
the real estate market are struggling to avoid fore closure, this generation,
surprisingly, has ready money in its pocket. They are after a retirement
home with every single amenity and will not settle for any thing less.
A investor, therefore, should understand this and shift his attention
and money towards the real estate investments. This will continue to generate
buyers because of the influx of retirees that continue.
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