Every day in the U.S., roughly 10,000 people turn 65. Prior to the health crisis that swept the nation in 2020, most people had to wait until they retired to make a move to the beach, the golf course, or the senior living community they were looking to settle into for their later years in life. This year, however, the game changed.
Many of todays workers who are nearing the end of their professional careers, but maybe arent quite ready to retire, have a new choice to make: should I move before I retire? If the sand and sun are calling your name and you have the opportunity to work remotely for the foreseeable future, now may be a great time to purchase that beach bungalow youve always dreamed of or the single-story home in the sprawling countryside that might be a little further out of town. Whether its 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 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 homeWe 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 (75%) own their homes, and only 23% have mortgage debt (including any equity loans or lines of credit). Since entering retirement, almost 4 in 10 retirees (38%) have moved into a new home. Theyre making a profit by selling their current homes in todays low inventory market and using their equity to purchase their future retirement homes. Its a win-win.
Why These Homeowners Are Making Moves Now
The health crisis 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. Its no surprise, therefore, to see in the same report that 32% of those surveyed cited the top reason theyre 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 a historic low, and with the buyer demand for single-family homes skyrocketing, theres never been a more ideal time to sell a single-family home and make a move toward retirement. Todays market has the perfect combination of driving forces to make selling optimal, especially while buyers are looking to take advantage of low interest rates.
If youre one of the 73% of retirees with a single-family home and want to move closer to your family, now is the 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.
Bottom Line
Whether youre 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. Lets connect today to discuss your options in our local market.
