How Seniors Are Changing The Real Estate Market

Have you heard how seniors are currently changing the real estate market? Let me explain.

The real estate market has, for lack of a better word, been pretty darned crazy for a while now. COVID 19 was part of the problem due to a number of reasons. But there are other problems as well.

A Seller’s Market That’s Gone Crazy:

Front door of a house with keys in the lock

Everyone dealing with real estate is wondering when prices are going to level off. When people can stop the bidding wars of paying thousands of dollars more just to get the home.

They’re also wondering when the inventory of houses will increase so there will be more houses on the market to buy.

But much of the problem is the current decisions of seniors.

More Boomers Are Choosing To Age In Place:

Boomers have more real estate wealth than any other generation. As was customary in the past, seniors sold their homes to move in with families. Or assisted living facilities or nursing homes.

That has changed. Less seniors are selling their homes, meaning there are less on the market to buy.

Which is making it even worse than it was for first-time homeowners to buy a home.

A miniature house someone is holding in the palm of their hand

Seniors Are Breaking Tradition:

According to Business Insider, Boomers are now breaking that tradition. This is a sign that boomers are choosing to “age in place.” Due to COVID, seniors are more cautious due to fear of infection.

Some simply did not want people in their home, as was to be expected. So they put off listing their homes. They were also wary that they wouldn’t be able to afford a reasonable replacement home.

So what are they doing? Many are remodeling their current homes.

Choosing To Remodel & Stay In Their Home:

With homes going up in value nationwide, they’ve become more willing to spend their money remodeling than past generations. This naturally turned into a home improvement boom.

So all those homes seniors may have been willing to sell in the past aren’t going on the market, fueling the housing crisis.

Graphic of dollar signs on top of a house

Then there was an increase in the price and supply of lumber. Which caused even more problems.

Therefore, among other reasons, boomers are not retiring in line with seniors in the past. They’re staying put and this is causing the supply of homes to worsen.

Another Condo Kendra & I Just Looked At:

This morning Kendra and I looked at another condo in the same complex as last time. It’s really the only complex I’m interested in, as they are all on one level. You get a fenced backyard with these condos built in the 1940s.

No yard seems to be the same size. The one I’m now bidding on is quite small.

Plus it’s in a prized area of town, where prices for the houses around it are 3-4 times the prices of the condos. The condos are currently around the $110,000 to $125,000 price range.

The houses across the street, where they tore old houses down to acquire the land to build new ones are close to half a million dollars.

At the other end, there are luxury apartments with a parking garage. Farther down toward the main street, there is my grocery store. Trader Joe’s is about two blocks away. Along with many restaurants.

Kendra says she thinks it’s worth it to get a condo and pay the HOA fees because I’m assured that the outside structure and the roof are taken care of. Actually they are putting new roofs on all 160 condos as I write this.

A clock with stacked coins and a fictional tree growing in them

The agent for the condo cordoned off time for us to see it before she opens it to the public, as a favor to my daughter.

Kendra already called the other realtor. She’s writing up the contract this afternoon after she deals with contractors for her new flip.

So we’ll see what happens with this one. I bid higher than the asking price.

If they take my offer and the appraiser doesn’t appraise that high, which they’re doing more and more lately, I’ll have to pay the cash over his appraisal.

I’ll let you know what happens.

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31 Comments

  1. LOL Awhile back, “boomers” were blamed for hanging on to jobs that denied recent grads a chance to move into entry level careers. Now we are blamed for hanging onto our homes so we can age comfortably in place! Each generation has its challenges. We met ours. (How about being drafted into that nasty Vietnam war?) You young’uns will meet yours!
    I’ve lived long enough to see dramatic market swings in housing. Some dozen years back, during the Great Recession, every second home was for sale, many on foreclosure or “short sale.” My daughters were lucky enough to benefit from that low priced market glut. I think the market will settle again, and you’ll be glad you waited, Brenda!

  2. Brenda, if the appraisal comes in lower than your bid, there is another option instead of paying for the difference. You can ask the seller to lower their price to the appraised value. Or you can agree to split the difference with the seller. I’m not sure this applies in Oklahoma, but your formal bid paperwork needs to say that your offer is contingent on the condo appraising for the bid amount.

    Good luck.

  3. omg..so excited for you and us..Best of luck. I hope it works out for you and your baby Ivy. I live in NC and the cost of real estate here is phenomenal. Down South it has not usually been the trend for house to go over the asking price..but a home in our nhood sold for $16,000 over the asking price and the asking price was about $50,000, over what the couple paid for the home about 4 years ago. Unreal. I sure hope your bid is accepted and you can move forward. That sounds perfect for your needs. Take care and cross your fingers.

    1. Still don’t know anything yet as the guy is going through all the bids. I bid $7500 over the asking price. The guy bought it in 2018. He will have made about $30,000 on it in that time frame.

  4. I hope it all works out for you . I live in a condo , in a small town . We have 30 condos , and since the beginning of the year 6 of them have been sold . It’s crazy !

  5. How exciting! The condo location sounds ideal. Fingers crossed your offer is accepted and the appraisal comes in at the buy price so you won’t have to cough up additional cash. It appears that economists wrongly assumed that the patterns established by older generations in the past would be followed by the boomers, but like the boomers have always done, we blew up all the old models and created new ones of our own, and I’m all for that! When I retired, I looked at it not as “winding down” toward the end of life but entering into an exciting new phase where I could actually do anything I wanted to do and be whoever I wanted to be, freedom from the “working for a living” grind that I’d been in for the prior 46 years. We’re not our grandmas and grandpas, that’s for sure.

  6. Good for you for not hesitating! The housing market in so many communities is beyond crazy. Best of luck, sounds like it’s a good option for you.

  7. Good for you for having the courage to quickly put in an offer! Saying a prayer that it will work out for you. Even if it doesn’t it sounds like you have narrowed it down to this complex and neighborhood. Sometimes that’s half the battle in home searching. Something good will come your way soon. I can feel it!

  8. Good Afternoon Brenda,
    I’m praying you get this one ! You are wise to make this a priority. Even when I was a young woman of 19 (50 Yrs. Ago), I wanted my own house… to OWN. I saw owning was tantamount to charting and choosing your destiny. When I became engaged and my husband and I started to plan a wedding; I told him very small! As in only us and another couple for witnesses, because I wanted to buy a home. He was surprised but understood my logic. We were married by a Justice of the Peace. In a little over 2 and a Half Yrs. we were going through escrow for our first home in Oceanside, California. That decision made us a lot of wealth. We have owned 20 different properties; each one making us a little more to contribute to our nest egg. This is a concept that should be taught in school… along with other logical concepts.
    Good Luck on this new chapter!

  9. Oh Brenda, I will just add my good wishes to everyone else’s – so want this to work out for you!

    Mary

  10. I hope they accept your offer and you can start packing! I’m glad Kendra is helping you with this. Best of luck!

  11. Hoping this one goes through for you. ☀️ It’s certainly is difficult to wait to hear back on an offer. Perhaps you’ll hear back soon. Best of luck. Glad to hear that your daughter is in your corner in this ongoing mission to acquire a new home for you and Ivy.

  12. This is so exciting!! Sending you the best wishes and good Luck, and of course, saying prayers that this is the “one” It sounds perfect for you! Fingers crossed too, just in case it’s needed.

  13. Brenda, this is wonderful news! I’m so glad Kendra was able to help you find something perfect for you and in a neighborhood where you’re safe and things are close by and convenient for you. Good things come to those who wait, and you were right to wait until you found what’s perfect for you. Good luck with everything. I can’t wait to see and hear more about it.

  14. Keeping you in my prayers! I believe Kendra is right about the roof and outside upkeep. My mother living in a condo for years and loved it. The HOA took care of her front yard and she took care of her fenced in back yard. It was perfect for her.

  15. Good Luck Brenda. Hope you get this place. It sounds really nice. Kendra is right the HOA will make sure the building is kept up and taken care of not like the rental building you live in now. Nice you will still have outdoor space. Good Luck

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