Looking for the next big market for hot potential homebuyers? Look no further than those 55 or older. Also known as baby boomers, the older portion of America is ready to buy. According to the Freddie Mac %%+ survey, 40% of baby boomers said they would like to move one more time in their life. That accounts for 27 million homeowners turned potential buyers.
“The decisions the nation’s baby boomers and other older homeowners make will have an enormous impact on the demand for housing and new mortgage credit for the foreseeable future,” says Dave Lowman, executive vice president of Single-Family Business at Freddie Mac. “Whether they buy new homes or decide to refinance and renovate their current ones, the size of this generation and the fact that they hold close to two-thirds, approximately $8 trillion, of the nation’s home equity makes it very important that we watch what they do.”
Twelve percent even said they would buy a home more expensive than their current one, and 37 percent said it will be in the same price range.
These were the top reasons the baby boomers gave as reasons to move:
- Affordability of living in a particular community (46 percent)
- The amenities needed to live there for many years after retirement (44 percent)
- Less maintenance (41 percent)
- No longer responsible for caring for the property (e.g. yard work, snow removal) (30 percent)
- Proximity to other family members (31 percent)
- Walkable community (28 percent)
- Abundant services for adults my age (25 percent)
- Access to public transportation (17 percent)
- Warmer climate (19 percent)
- Having a place smaller than my current home(19 percent)
This study goes to show that a market for hot potential homebuyers may not be what you expect. Even older generations are not quite as settle as you may assume, as Freddie Mac’s survey showed many are interested in moving. 13 percent said they would move in the next four years. If you too are a baby boomer looking to move, RE/MAX Paradise can help you find the perfect home in Miami!