It’s Spring! April flowers are springing up in AARC communities across the South! Sunny days and mild temperatures are calling you to the mountains, the lake, the sea… Warmer temperatures mean the housing market is heating up too. Retirees are shopping around for the right place to flee the snow-shoveling, dangerous roads, and slippery sidewalks. AARC Members have plenty of options for them to consider!
Isn’t it time for them to find one of AARC’s amazing Seal of Approval(SOA) communities, meet new friends and put down their roots? With SOA, they will rest assured knowing the community meets all of AARC’s rigorous criteria to ensure their choice is the right place and is retiree-friendly!
Jeff Fleming, Chair
REALTORS® Forecast Home Price Increases
REALTORS® expect home prices to continue to rise over the next 12 months. But they expect them to do so at a moderate pace, given tight credit conditions and the chipping away of home affordability, according to the latest REALTORS® Confidence Index, a monthly survey distributed to more than 50,000 real estate practitioners to gauge expectations over home sales, prices, and market conditions.
Real estate professionals reported a median price expectation of 3.9 percent over the next 12 months.
The states where practitioners are predicting the biggest increases—5 to 7 percent—are in California, Florida, Alaska, and Hawaii. Tight inventories have helped to lift home values in these areas, according to the survey.
“In states with booming economies like Washington, North Dakota, Texas, Michigan, and the D.C.-metro area, the expected price increase is about 3 to 5 percent,” according to the report.
Real estate professionals also expressed several concerns over the housing market holding back some buyers, particularly due to “unreasonably” tight credit conditions.
“Access to credit was often cited as a deterrent to home buying,” according to the report. “About 13 percent of REALTORS® who did not close a sale in February reported having clients who could not obtain financing.”
In those cases, about 6 percent of the professionals said their buyer gave up, while 7 percent said their buyer continued to seek new or other financing. Other transaction hang-ups were lack of agreement on a price (accounting for 11 percent); buyer losing a home to competition (10 percent); and appraisal issues (3 percent).
By REALTOR® Magazine Daily News
Baby Boomers More Confident About Retirement with Lifestyle Plan
Today, Better Homes and Gardens Real Estate has revealed findings of its latest survey of Baby Boomers, shedding light on the retirement outlook, financial mindset and lifestyle preferences of the nearly 77 million Boomers currently in the U.S. With 2014 being considered the “Year of the Boomer,” as the last of the generation turns 50, the survey offers a timely analysis of the population’s shifting attitudes and expectations.
Overall, the survey reveals an optimistic outlook, with 70 percent of respondents expecting the home they retire in to be their best, and nearly half reporting that their increase in confidence can be attributed to having a retirement lifestyle plan in place.
Some key survey findings about Baby Boomers and their outlook for retirement include:
- Among Baby Boomers who feel more confident about achieving their ideal retirement lifestyle compared to five years ago, the top factor is having a retirement lifestyle plan (49%).
- Approximately one-fourth (22%) of Baby Boomers are likely to buy an additional home to use during their retirement years, such as a vacation or beach house. For a generation that was hit hard during the recession, this commitment to lifestyle planning and desire for their “dream home” is a great show of optimism.
- This generation has cared for children and grandchildren and taken care of aging parents, but most – 83% – do not expect family to move into their home in the future.
- Many Baby Boomers have planted roots in their communities and want to remain in a familiar place. Of those surveyed who are not already retired, 72% plan to retire in the same state they current live.
Better Homes And Gardens Real Estate Finds 70 Percent Of Baby Boomers Expect The House They Retire In To Be Their Best
National Survey Finds Baby Boomers More Confident About Retirement with Lifestyle Plan
MADISON, N.J. (March 25, 2014) – Better Homes and Gardens® Real Estate today released the findings of a national survey of Baby Boomers (ages 49-67) revealing this influential generation’s feelings of optimism about living an independent, active lifestyle; a lifestyle unrestrained by planned retirement communities and instead bolstered by living out their life passions. The survey indicates that 57 percent of Baby Boomers plan to move out of their current home and 70 percent believe the house they retire in will be the best home in which they have ever lived.
“With approximately 77 million Boomers in the U.S., it’s quite significant for our industry to see that this population has so much positive anticipation for the home in which they will be retiring – and for the majority, their aspirations involve making a move,” said Sherry Chris, president and CEO of Better Homes and Gardens Real Estate LLC. “Baby Boomers are known for being a hardworking, trailblazing generation. As they have done with every other major life event, they are marching head-on into retirement with big plans and no desire to change pace. Our study shows that Baby Boomers continue to surprise with nuances of what they care about and what they are prioritizing.”
Among Boomers who feel more confident about achieving their ideal retirement lifestyle compared to five years ago, the top factor is having a retirement lifestyle plan (49%).
“This mindset shows us that, for Baby Boomers getting ready to retire, there’s more to it than solely saving money in the bank,” said Chris. “To have the utmost confidence in their retirement plan, this generation is actively planning a comprehensive lifestyle plan, taking into account the type of home and community they want to live in, as well as the option of continuing to work or taking advantage of travel and entertainment opportunities.”
Approximately 1 out of 4 Baby Boomers surveyed are also likely to buy a second home to use during their retirement years, such as a vacation or beach house. For a generation that was hit hard during the recession, this commitment to lifestyle planning and desire for their “dream home” is a great show of optimism. On the selling side, 31 percent of Boomers are more likely to want to sell their home now than they were five years ago, showing a renewed confidence in the real estate market.
Additional survey findings unveiling the retirement motivations and aspirations of Boomers include:
- Visitors Only: This generation, often referred to as the “Sandwich Generation,” has cared for children and grandchildren as well as aging parents, but most – 83 percent – do not expect family to move into their home in the future, indicating they expect any “house guests” to be temporary. So Millennials, don’t get too comfortable at Mom and Dad’s.
- Making the Move: When asked which type of community Baby Boomers would most likely move to, 39 percent opted for a rural community, such as a farm or small town. Next in line was the traditional retirement community such as a 55+ exclusive neighborhood (27%), followed by an urban community such as a metropolitan city (26%).
- Putting Down Roots: Many Baby Boomers have planted roots in their communities and want to remain in a familiar place. In fact, of those surveyed who are not already retired, 72 percent plan to retire in the same state in which they current live.
- Custom Treatment: Among those who plan to move out of their current home, 69 percent are willing to make updates or renovations to their next home to fit their specific wants and needs. However, when all Baby Boomers were asked to pick the most important factor in choosing their next home, having low-maintenance home features topped the list (42%).
- Retirement To-Do List: Historically, retirement was almost automatic at the milestone age of 65. Many Baby Boomers, however, have a different plan in mind, since 28 percent of those surveyed who are not yet retired, plan never to retire. In fact, 46 percent of Baby Boomers who plan to retire still anticipate working part-time.
About the Survey
The Better Homes and Gardens Real Estate Baby Boomers Survey was conducted by Wakefield Research (www.wakefieldresearch.com) among 1,000 U.S. adults ages 49-67, between February 6 and February 18, 2014, using an email invitation and an online survey. Quotas have been set to ensure reliable and accurate representation of the U.S. adult population 49-67.
Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.
4 Million Homes Return to Positive Equity
Rising home prices helped many home owners welcome the return of equity in their homes last year. In 2013, 4 million homes returned to positive equity, bringing the total to 42.7 million, CoreLogic reports in its fourth quarter 2013 Equity Report.
Of the 42.7 million residential properties that now have positive equity, 10 million – or 21.1 percent – have less than 20 percent equity, CoreLogic reports. More than 1.6 million residential properties have less than 5 percent equity.
About 6.5 million residential properties with a mortgage – or 13.3 percent – remained in negative equity territory by the end of 2013.
“The plight of the underwater borrower has improved dramatically since negative equity peaked in December 2009 when more than 12 million mortgaged home owners were underwater,” says Mark Fleming, chief economist for CoreLogic. “Over the past four years, more than 5.5 million home owners have regained equity, reducing their risk of foreclosure and unlocking pent-up supply in the housing market.”
The bulk of home equity for properties with a mortgage is concentrated at the higher-end of the housing market, with 92 percent of homes valued at more than $200,000 having equity compared to 81 percent of homes valued at less than $200,000, CoreLogic reports.
Five states alone account for nearly 37 percent of the negative equity in the U.S. CoreLogic reports that the following five states have the highest percentage of mortgaged properties in negative equity:
- Nevada: 30.4%
- Florida: 28.1%
- Arizona: 21.5%
- Ohio: 19%
- Illinois: 18.7%