Communities like Sun City Grand active senior retirement community in Arizona, may see a boost of retirees, and pre-retirement homeowner purchases! With more and more people working from home, this gives people a chance to move to that dream retirement home early!
What the experts are saying is every day in the United states, roughly 10,000 people turn 65. Prior to the Covid19 health crisis that swept Arizona and the nation in 2020, most people that worked a job or ran a business 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, everything has changed.
Opportunities for many of today’s workers who are nearing the end of their professional careers, but maybe aren’t quite ready to retire, have a new choice to make: should I move before I retire? If the sand and the Arizona 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 or that home surrounded by golf courses and fun adult activities you’ve always dreamed of or the single-story home in the sprawling countryside that might be a little further out of town. 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 round out a long and meaningful career.
Real estate expert Lawrence Yun, Chief Economist at the National Association of Realtors, has noted:
“The covid19 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.”
More data from the real estate experts reveled in the 20th Annual Transamerica Retirement Survey, 3 out of 4 retirees (75%) own their homes free and clear, and 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. Most are in this situation because they are making a profit by selling their current homes in today’s low inventory market and using their equity to purchase/downsize into their future retirement homes. It’s a win-win. We know this song very well, Sell high in California, buy bigger, nicer, safer, newer and lower in Arizona.
Why Are Retirees Moving now?
The 2020 Covid19 health crisis this year made us all more aware of the importance of our family and friends. Due to travel restrictions, lack of places to stay, many of us have not seen our extended families since the 2020 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):
Experts feel there has never been a better time to sell a single family home: The survey also revealed that 73% percent of adult 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, there’s never been a more ideal time to sell a single-family home and make a move toward retirement. Today’s market has the perfect combination of driving forces to make selling optimal, especially while buyers are looking to take advantage of low interest rates.
Be prepared if you sell, buying a home in this low inventory market means it could take time to find a home. Make arrangements to rent, stay with family, and hopefully you won't need to take those drastic measures, but I would not plan on a fast purchase.
If you’re 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. (you may be moving twice!)