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The DREAM Down-Sizer Market?

The DREAM Down-Sizer Market?

(Baby Boomer Bonanza!)

We are in the midst of an extreme market in most parts of the country and world where the catch-up economy emerges from the global COVID Recession that triggered much larger demand - fueled by lots of cheap cash - than there is the supply of most things.....including homes. However, in all markets lie opportunity, and one area that is possibly the greatest area of new future inventory lies in the hands of down-sizing Baby Boomers (57-75 years old).  Here is why:

  1. Many Baby boomers own homes much larger than their current needs. Kids grow up and move out.
  2. Many Baby boomers bought their homes many years ago and their mortgages may be paid down significantly or completely.
  3. Many Baby boomers are adjusting or shifting their careers, either working less, retiring or changing professions.
  4. Some Baby boomers who lived in the suburbs or in high-tax areas saw some significant de-valuation prior to 2020. This has turned around dramatically.
  5. Many Baby boomer more prone to COVID risk did not want to sell in 2020 fearful of exposing their homes to the virus. Some felt selling during a pandemic would not deliver maximum results. This has changed in a post-vaccine world.
  6. Many Baby boomers hold a big chunk of their assets and retirement funds in their homes. Converting this to diversify now may make sense for some.
  7. Many Baby boomers have large capital gains on homes they have owned for a long time.....if these rates change, they may net less for retirement.
  8. Many Baby boomer larger homes that they've owned a long time may need lots more maintenance, renovation. and repairs due to age. Often their real estate taxes, HOA fees, insurance costs, etc are high too.
  9. Some Baby boomers may be compelled to sell due to personal physical changes that prevent them from navigating many stairs. Or being closer to certain health-related amenities and services. Smart boomers anticipate these needs early and proactively.
  10. Some Baby boomers are simply bored and ready for a 'next chapter'. Being mentally stimulated and making changes is a key to healthy longevity.

No market where over-bidding and multiple bidding is rampant lasts forever (yes it can last for a long time!). Super-low interest rates don't last forever especially in inflationary times. This is as good a time as ever to maximize valuation. Let's assume a market is up 20% right now......the $3 million home of 2019 may be worth $ 3.6 million today. Conversely, the smaller $1 million replacement home would be worth $1.3 million today. The net gain is obvious. The DREAM Down-Sizer Market?

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In the pursuit of selling your home, Mayer Realty Group works closely with our hand-picked team of professional vendors, each with excellent reviews and proven track records to manage every step along the way, so you don’t have to worry about unexpected things popping up and going unresolved.
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