Housing Needs In The Twin Cities From Home Destination: Ranch homes bought up by seniors looking for one level homes have lowered the housing inventory in the Twin Cities.
Seniors Are Persistent In Seeking Ranch Homes To Buy
The National Association of Home Builders released a report on their latest survey showing that home builder's are confident that seniors are buying single family homes and renovating them in 2103. The What Home Buyers Really Want survey was a joint accomplishment by the NAHB Economics and Housing Policy Group in 2012 using a consumer research panel run by the NAHB Research Center.
Like most home buyers out looking to buy a home in today's tight Minneapolis housing market, the 55+ segment of those searching for real estate listings face a low inventory of single-family homes. When beginning their search, seniors that are already per-qualified for a home loan have a needed advantage. Trying to buy without one is truly daunting. Additional obstacles to buying a home exist as Minnesota strives toward a stronger housing recovery. They include tight credit conditions for buyers and obtaining accurate appraisals, shortages of available homes to buy, and home builders trying to find lots to on to construct new homes. Some moments it feels like a buying homes frenzy.
55+ Housing Market Indices - Seniors Are Renovating Homes
Home builders confidence is strong that senior homeowners are seeking to buy and renovate a home for retirement improved the fourth quarter of 2012 compared to the same period a year ago, according to the National Association of Home Builders’s latest 55+ Housing Market Indices (55+ HMIs). NAHB has separate 55+ HMIs for two segments of the 55+ housing market: single-family homes and multifamily condominiums. A strong trend is growing amongst seniors to choose living with other family members and enjoy a quality life made up of close family bonds Each senior HMI is based on a survey that asks if market conditions are good, fair or poor. An index number below 50 indicates that more builders view conditions as poor than good.
Home Destination See Highlights In NAHB's 55+ HMI Report:
Both 55+ HMIs remain below 50 but have gained substantially over reports from one year ago
Seniors living in single-family residential homes increased 10 points to a level of 28
Report findings show a fifth consecutive quarter of year over year housing gains
Multifamily condos remain the weakest segment of the 55+ housing market and many prefer remaining in their own homes
Still the gains for the 55+HMI for condos were strong enough to record a substantial year-over-year increase of six points to 19.
69% of this senior age demographic prefer a single-story home, where as the percentage is 57% across all age groups.
20% of individuals age 65 and older have plans to buy a home in the next one to three years. That includes the range of a single-family detached home, townhome attached, multi-family apartment, mobile home, or "other".
48% of senior respondents said they’d like a new home to range between 1,600 and 2,499 square feet.
39% indicated that adequate living space and number of rooms to meet needs is the number one characteristic that would most influence seniors to purchase a new home.
42% of the seniors surveyed said ease of home maintenance was a requirement when buying a home.
45% want a home with energy efficient features.
Principal Reductions Benefit Homeowner And Lender
55+HMI 12Q4Meanwhile, the 55+ multifamily rental indices, which had already recovered substantially in 2011, remained relatively stable in the fourth quarter, although there was a slight pullback due to uncertainty about the low-income housing tax credit—the financial driver behind a significant portion of apartments built for this segment of the market. Present production dropped three points to 31, expected future production dipped one point to 34, current demand for existing units dropped four points to 38 and expected future demand fell five points to 39.
"Nearly every measure of housing market strength—sales, starts, prices, permits and builder confidence—has been trending upward in recent months and we expect to see gradual but steady growth along these lines in 2013. People feel comfortable if they buy a house that it will appreciate, not depreciate, in value." ~ NAHB Chief Economist David Crowe
Growth In The Number Of Older Homeowners
By and large, older households—with their traditionally lower share of DIY activity were less affected by the housing bust, according to Harvard's housing study. The homeownership rate for households age 65 and over has actually increased substantially since 2007. Households age 55–64 have fallen less susceptible to housing struggles than younger age groups. Older owners also lost a smaller share of their home equity than younger owners. Coupled with the growth in the numbers of owners in these age ranges, the share of home improvement spending among owners age 55 and over thus increased more than seven percentage points (38.1 percent to 45.5 percent) between 2007 and 2011. Seniors have better rates of homeowners who avoided homeowner loan delinquecies due to owning more home equity and having fewer underwater home mortgages.
Upbeat Minnesota Foreclosed Homes Q3 Report
The US Census Bureau reports show that Minnesota's residential population is increasingly made up of a greater percentage of seniors. The bureau projects that, led by the baby boomers, the population age 65 and over will increase by 15.5 million—nearly 40 percent—between 2010 and 2020. The near-term growth in this older population is already underpinning a strong demand for retrofits to existing homes to enable these households to age in place.
Housing Americas Seniors - Harvard University Housing Study
Confirming our senior housing demographics, Harvard University's Joint Center report on Housing Americas Senors says, "Even though nine out of ten seniors 70 and over live in conventional housing, the regular stock is not designed to meet their changing needs, tastes, and preferences". Buying a ranch home and gaining living quarters all on one level is a first step for many. "However, a range of home renovations are still needed, from installing handrails to structural modifications that would help seniors function more easily at home," says Thuening.
Additional obstacles to buying a home exist as Minnesota strives toward a stronger housing recovery. They include tight credit conditions for buyers and obtaining accurate appraisals, shortages of available homes to buy, with an additional lot shortage for builders to construct new homes.
Senior Population Demographics Indicate Seniors Enormous Impact On Housing
The Minneapolis housing market is impacted by higher numbers of elderly. On a national level, people 65+ represented 13.1% of the population in the year 2010 but are expected to grow to be 19.3% of the population by 2030. In fact, all of the increase in the 65 and over age group after 2030 can be attributed to increases in the number of people 75 years and older. The population age 85 and over would be the fastest growing large age group, doubling in size from 1995 to the year 2030, and increasing fivefold by the year 2050. In 1995, 3.6 million people were projected to be 85 years and over. By 2050, this figure would increase to 18.2 million. Both increased life expectancy and the increased number of people entering these age groups contribute to the population explosion in these older ages.
Twin Cities foreclosed homes in 2011 Q3 totaled 2,969
Twin Cities foreclosed homes in 2011 Q3 totaled 2,615
Twin Cities foreclosed homes down 11.9%
31 counties reported more foreclosed homes and 58 counties showed fewer foreclosed homes
Download the Harvard University Housing Market Study on Senior Housing Needs - Ready For Renewal
Download the Census Bureau Senior Population Demographics Report
Download the U.S. Administration On Aging Profile of Older Americans Report 2012
Download the NAHB Seniors Housing Markets Are Positive In 2013 Press Release
Home Destination, a Minneapolis residential Realtor with RE/MAX Results, helps families with plans for buying a home with better informed decisions and guides them thorough the process. Twin City senior homeowners desiring help to stay in their homes, sell or buy a home to meet their home ideals, can reach Home Destination by calling 612-396-7832 and asking for Jenna Thuening.
Jenna Thuening, a CDPE can help you determine your best opportunities to refinance your home.
Eden Prairie MN 55334
Jenna's home page: homedestination.com
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