Many AARC member communities are tallying up the result from a surprisingly successful 2020 – unlike the traditional description of “retirement community,” our members are typically destinations, and getting away from urban areas was a major (and obvious) trend last year. Retire Tennessee has touted a report that showed their state as having topped U-Haul’s list of one-way moves for the first time. And many developer communities faced more of a supply challenge (having enough homes completed) than a demand one.
The nature of the pre-retiree buyer for retirement destinations has changed due to the pandemic – and, more broadly, more pre-retiree buyers are recognizing the quality of life that destination retirement communities afford. Doug Yearley, CEO of luxury homebuilder Toll Brothers, was interviewed by TIME in January 2021:
“If you were thinking, “My retirement plan is to go to Florida, to go to Hilton Head, to go to Charleston, S.C., wherever,” and you thought, “I’m gonna work till 63, so maybe around 61 let’s start looking.” The 55-year-old is now saying, “You know what? I’ll fly back to New York one week a month. My boss is gonna let me make it work. We’re going earlier.” We’re seeing more of that.”
The devastation the virus wrought on families across the globe is tragic. But those of us whose jobs involve buyer attraction must recognize the changes brought about by COVID, and plan for the future. That planning and learning effort is why I sought out a resource like the AARC more than a decade ago, and why I believe our organization can help you in 2021.
Please let me know how we might do that for you and your community!
Chair, The AARC
Double Digit Growth in Home Prices
Jing Fu, NAHB.com| January 26, 2021
In November, national home prices continued to rise at a fast pace, fueled by strong demand and low inventory. All 19 major markets saw double-digit growths in home prices.
The S&P CoreLogic Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 18.3% in November, following a 21.9% increase in October. It marks the fourth consecutive month of double-digit growth in home prices. On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted a 9.5% annual gain in November, up from 8.4% in September. It is the fastest pace of home price appreciation since February 2014. Strong demand, low interest rates and tight inventory together pushed home prices to new highs amid the COVID-19 pandemic.
Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 12.9% in November, following a 19.3% increase in October. On a year-over-year basis, the FHFA Home Price NSA Index rose by 11.0% in November, after an increase of 10.3% in October. It confirmed rapid growth in home prices for this month.
In addition to tracking national home price changes, S&P reported home price indexes across 19 metro areas in November (Detroit metro area data was missing in November 2020 because there are not a sufficient number of records for the month of November for Detroit).
In November, all 19 metro areas reported positive home price appreciation and their annual growth rates ranged from 9.1% to 27.7%. Among all the 19 metro areas, seven metro areas exceeded the national average of 18.3%. New York, Seattle and Boston had the highest home price appreciation. New York led the way with a 27.7% increase, followed by Seattle with a 22.4% increase and Boston with a 21.9% increase.
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2020 Migration Trends: U-Haul Ranks 50 States by Migration Growth
Tennessee claims No. 1 spot for first time; Texas in top 2 for fifth straight year
UHaul/PRNewswire | January 4, 2021