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The 51-year-old real estate investor and owner of Swaney Consulting Group has personal reasons to hold on, at least for now. He may eventually move to a condo at the beach, but wants his future grandchildren to enjoy his pool, yard and basement. For these amenities, he spends about $18,000 annually in lawn maintenance, taxes, insurance and utilities alone.
The housing market, on the rebound since the Great Recession, is increasingly being driven by millennials and first-time homebuyers who "are hungry for starter homes and efficient layouts," said Javier Vivas, manager of economic research for realtor.com.
The trend may leave some older homeowners in a lurch if they want to retire, downsize and cash in their nest egg.
Large single family homes — defined as the largest 25 percent of all listings on realtor.com and about 2,900 square feet to 4,000 square feet — receive 12 percent to 45 percent less views on realtor.com than the typical home in each market.
This year so far, large, single family homes are selling up to 73 percent (or 50 days) slower on average than the typical home in each market.
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
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"We're finding these homes are an albatross for clients," said Michael E. Chadwick, a financial planner and owner of Chadwick Financial Advisors in Unionville, Connecticut.
"We've got several right now who have been trying to sell them and move south, and they've cut the asking price by over 30 percent each and they're still not going anywhere fast," he said.
But even for big homeowners selling now, purchasing another home is likely going to be a lot more expensive for them if they recently refinanced to historically low rates, said Tim Manni, mortgage expert at NerdWallet. Inventory from which to choose is also low.
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.
Guess it depends on where the home is located and the local market. We sold our large family home in southwest Miami Dade County at the end of 2012. We got three offers the first day it went on the MLS, took one and sold it at our asking price. Whether that would happen in 2017, I couldn't say, but over the years houses in that neighborhood, if the sellers weren't asking way too much money, sold within a short period of time.
Guess it depends on where the home is located and the local market. We sold our large family home in southwest Miami Dade County at the end of 2012. We got three offers the first day it went on the MLS, took one and sold it at our asking price. Whether that would happen in 2017, I couldn't say, but over the years houses in that neighborhood, if the sellers weren't asking way too much money, sold within a short period of time.
Yes that was the norm then as the market was recovering from a town turn. What I have read and heard discuss is that we are nearing a new peak at the higher price points in the market as incomes have not kept up with price increases.
The issue is not the ability to sell but the price point of that sale compared to previous months years per your example.
I've lived in CT since 1990. In the CT suburb we landed in new home construction was exclusively over priced inefficiently designed McMansions built on acre lots. I've been in some of those homes. They're sparsely furnished with second hand furniture. If you look closely at the landscaping, it's not being kept up and is going to pot.
The dirty little secret is that home ownership is highly overrated and is a money pit. What no one impresses upon wide eyed first time buyers is that affording to buy a home is one thing. Affording to maintain a home is another thing entirely.
The 51-year-old real estate investor and owner of Swaney Consulting Group has personal reasons to hold on, at least for now. He may eventually move to a condo at the beach, but wants his future grandchildren to enjoy his pool, yard and basement. For these amenities, he spends about $18,000 annually in lawn maintenance, taxes, insurance and utilities alone.
Did you read the quote you posted? In a condo, he's still going to be paying taxes, insurance and utilities.
Ok and will he be paying as much? Not sure what you are trying to say
If he's smart and buys a normal sized condo without high fees, he should be paying less.
I don't think there will be much of a future market for these monster homes. Four thousand square feet is excessive unless you're opening a B&B, lol. Maintenance would be a nightmare and anyway, if anyone needs that much space, they are not using the space wisely.
Some boomers think bigger is better. And there are a lot of boomers. Future generations probably won't have this mind set about the huge houses and future generations exist in smaller numbers than the boomers. So, yes, I bet the CCRC places won't be in very high demand once the boomers die off. The boomers were an anomony and once they are gone things will probably return more to the way they were previously--normal sized houses and probably small condos or apartments for retirement.
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
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
Agree,
real estate like many other things depend on a variety of factors. In the Philly/south jersey/western suburbs the trend tends to be cyclical.
Young couples buy town homes, then the have kids move out of the city to typical suburbian houses (2000-3500 sq ft) then downsize back to city condos when empty nester,
As long as sellers have realistic price expectations there are no problems selling a larger home . that could be said for any home.
If he's smart and buys a normal sized condo without high fees, he should be paying less.
I don't think there will be much of a future market for these monster homes. Four thousand square feet is excessive unless you're opening a B&B, lol. Maintenance would be a nightmare and anyway, if anyone needs that much space, they are not using the space wisely.
Some boomers think bigger is better. And there are a lot of boomers. Future generations probably won't have this mind set about the huge houses and future generations exist in smaller numbers than the boomers. So, yes, I bet the CCRC places won't be in very high demand once the boomers die off. The boomers were an anomony and once they are gone things will probably return more to the way they were previously--normal sized houses and probably small condos or apartments for retirement.
Bada Bing and that is a concern we and other prospective CCRC customers have. To deal with that a new model based on monthly fees only has emerged and you can leave whenever you want with no money tied down. On the other hand they can kick you out any time also.
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