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Old 10-15-2017, 01:58 PM
 
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Quote:
Originally Posted by JayCT View Post
I think this is over reaction. Remember the younger generation is only now starting to recover from the recession 8 years ago. They are now beginning to start families which means that they are still not ready to move to the suburbs. They will when they realize that raising kids in tight urban areas is not easy. You can already see it happening in our area.

I laughed when I saw the comments made by the financial guy from Unionville Connecticut. We live in another affluent suburb of Hartford and a development of McMansions here is having no problem finding buyers. I think the problem his clients are facing is that the homes they are trying to sell are outdated and today's buyers tend to want an updated home. Hard to sell them on 35 year old decor these days but that was true 20 years ago too. Jay
Yes that is part of the equation. The owner of older large homes competing against new ones has in some areas depressed prices. At that price point the need to upgrade may become part of the sales equation. That all comes at a cost usually coming out of equity.
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Old 10-15-2017, 02:08 PM
 
Location: Massachusetts
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Quote:
Originally Posted by JayCT View Post

I laughed when I saw the comments made by the financial guy from Unionville Connecticut. We live in another affluent suburb of Hartford and a development of McMansions here is having no problem finding buyers. I think the problem his clients are facing is that the homes they are trying to sell are outdated and today's buyers tend to want an updated home. Hard to sell them on 35 year old decor these days but that was true 20 years ago too. Jay
Same thing in the Greater Boston area. There aren't even enough homes to keep up with the demand. I don't think we'd have any problem selling our house, and when it's time to retire and move we won't be buying anything much smaller.
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Old 10-15-2017, 02:36 PM
 
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Quote:
Originally Posted by TuborgP View Post
The thread title is the same as the article and not my wording;

https://www.cnbc.com/2017/10/13/boom...ime-comes.html



While this isn't most seniors it is a segment of the market and a segment that often provides the growth for active 55 communities and CCRC's

More from the link:



Will the buyers be there for expensive CCRC's if needed to be sold? Active 55 down the road? etc etc.

We sold almost ten years ago at about 90-95% of the recent market peak. We got out just in time and many others who didn't sell are still behind are just about where they were then and still not at peak. Part of the reason is their house is now thirty years old and not the new thang they once were. Folks who refinanced 11 years ago could well be in a bind now in their 60's plus.


If these people are willing to offer favorable terms, there are millions of frustrated renters eager to buy.
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Old 10-15-2017, 02:44 PM
 
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Originally Posted by CaseyB View Post
Same thing in the Greater Boston area. There aren't even enough homes to keep up with the demand. I don't think we'd have any problem selling our house, and when it's time to retire and move we won't be buying anything much smaller.
https://www.trulia.com/home_prices/M...ston-heat_map/

Interesting data for higher priced houses in the Boston area. Shows neighborhoods price increases/decreases year over year along with average listing price compared with average sale price and median sale price by neighborhood.

The issue isn't just selling your house but how much you get out of it to use for the next stage of life. Expectation and reality can be very different. In my old stomping grounds I was told about a guy who bought a house on the Outer Banks prior to selling his current home. Took out a bridge loan and boom the market crash. I sold my house for a lot but not as much as if I had listed 6 months earlier.
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Old 10-15-2017, 02:45 PM
 
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Originally Posted by freemkt View Post
If these people are willing to offer favorable terms, there are millions of frustrated renters eager to buy.
At 500K and up? It isn't just about selling but about price point and planning based on anticipated price.
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Old 10-15-2017, 04:08 PM
 
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TuborgP,

I suppose it all depends where the $500K home is located. In my area there are plenty of young people who can afford that and more comfortably. HGTV has changed the buying metric as many Buyers are now looking for the newly decorated home. In the past decorations did not add to appraisal value. Home value was based on location, size and amenities. Now how bright and shiny the home is needs to be factored into the equation.

In line with that, whether it was worth it to own the home isn't always about how much capital gain exists at sale. Sometimes you have to factor in how much you would have paid in rent as opposed to how much you paid to own.

Also, the real estate market is like any other market. It has cycles of highs and lows. Many people will simply wait for the next upturn in the market before selling.

And between the fires in CA, the floods Texas and Florida construction costs are going to rise. So that will be a factor too.

Meanwhile, there are so many changes going on in technology/AI that I'm not sure how in demand CCRCs are going to be in the future. It is going to change a lot of industries. I'm not sure people buy a home with an eye toward how affordable it will make the CCRC for them.
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Old 10-15-2017, 04:12 PM
 
29,813 posts, read 34,900,894 times
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Quote:
Originally Posted by LookingatFL View Post
TuborgP,

I suppose it all depends where the $500K home is located. In my area there are plenty of young people who can afford that and more comfortably. HGTV has changed the buying metric as many Buyers are now looking for the newly decorated home. In the past decorations did not add to appraisal value. Home value was based on location, size and amenities. Now how bright and shiny the home is needs to be factored into the equation.

In line with that, whether it was worth it to own the home isn't always about how much capital gain exists at sale. Sometimes you have to factor in how much you would have paid in rent as opposed to how much you paid to own.

Also, the real estate market is like any other market. It has cycles of highs and lows. Many people will simply wait for the next upturn in the market before selling.

And between the fires in CA, the floods Texas and Florida construction costs are going to rise. So that will be a factor too.

Meanwhile, there are so many changes going on in technology/AI that I'm not sure how in demand CCRCs are going to be in the future. It is going to change a lot of industries. I'm not sure people buy a home with an eye toward how affordable it will make the CCRC for them.
CCRC’s tend to be built high equity values exist.
For many that equity is there buy in.
Makes a difference in buying into a Active 55 if a mortgage isn’t in the equation.
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Old 10-15-2017, 04:24 PM
 
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Tuborg, It makes me think of the high end condos that were built that were really only for the affluent. By the time I grew up and got married I found that the buildings had aged to the point that the affluent weren't living there any more and now the middle class was there.

It is pretty much the same with most things. Everything eventually filters down through the various classes.
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Old 10-15-2017, 04:25 PM
 
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Just to be contrary, I note that in my end of our county, new SFH's run 4500 square feet and up, and are selling briskly to people with small kids - in other words, mostly under age 40.
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Old 10-15-2017, 04:45 PM
 
29,813 posts, read 34,900,894 times
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Quote:
Originally Posted by LookingatFL View Post
Tuborg, It makes me think of the high end condos that were built that were really only for the affluent. By the time I grew up and got married I found that the buildings had aged to the point that the affluent weren't living there any more and now the middle class was there.

It is pretty much the same with most things. Everything eventually filters down through the various classes.
At what price point and what capital gains compared to what was expected?
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