Boomers are Selling at Record Rates and Moving to Florida

25 Feb

Baby Boomers, which is the generation born between 1946 and 1964 retired in record rates during 2020. According to statistics, roughly 2 million boomers have retired every year since 2011. However, in 2020, a whopping 3.2 million boomers turned in their two-week notice. 

Luckily, Baby Boomers have seen a huge surge in home values as house prices have skyrocketed. Statistics show that in the fourth quarter of 2020, a shocking 88% of the housing markets in the U.S. saw double-digit home price growth. The national median for home prices rose 14.9% year-over-year to $315,900. 

Boomers (or any homeowner for that matter) who want to cash out of their home without taking out a home equity loan or reverse mortgage will have to downsize to get their money out. Boomers are downsizing at record rates and looking to move to sunny locations for the most part. 

The Oldest Boomers are selling 

The oldest segment of the Boomer generation (65 to 73 old’s) are selling their homes at a much higher rate than any other age group in the entire country. They are also the group that is moving the furthest distance after selling although the median distance is around 40 miles. 

“Most retirees make their decision about where to move based on where their children live. Oftentimes I find that clients want to move closer to their children or grandchildren,” said Yawar Charlie, real estate agent at the Aaron Kirman Group in Los Angeles in a recent Forbes article. “However, if the couple doesn’t have children, they don’t really feel the need to live that close to their immediate family, they really want their dream retirement home. Usually, this is near or on a golf course, a beach or warm-weather destination.”

A recent analysis by look at the top 10 most popular places where seniors are searching for homes and big shocker, all of them are in Florida. Here are the top 10 market that seniors are searching for homes:

  1. Naples, Florida
  2. Sarasota, Florida
  3. Venice, Florida
  4. Fort Myers, Florida
  5. Vero Beach, Florida
  6. Ocala, Florida
  7. Delray Beach, Florida
  8. Boca Raton, Florida
  9. Bradenton, Florida
  10. Punta Gorda, Florida

A few things to consider when moving

If you are a Boomer (or any other generation for that matter) that is thinking about moving, there are a few things you should consider before calling an agent and listing your home. Here are a few things to think about before moving:

Research New Areas

If you are considering moving to a new city or state, you should absolutely research the new area and contact a real estate agent in regard to local property taxes, cost of insurance as well as any homeowners association fees or other unique fees that may impact your new home. It is always a good idea to check the average cost of power, water and other utilities. 

“Insurance considerations can also be discussed with their Realtor to determine the flood zone, fire hazard zone and other insurance-related issues which can create cost variances for property insurance. Of course, any other tax differentials should be discussed with their tax accountant for full clarity,” said Mary Lee Blaylock, president and chief executive officer at Berkshire Hathaway HomeServices California Properties in the Forbes article. 

Get Your Home Appraised

Have your home appraised before putting it on the market so you have a solid idea of how much you can expect to get for it. Prices are changing quickly in today’s hot markets so the value of your home can change even month to month. A local real estate agent should be able to give you a pretty accurate appraisal and be able to tell you what they think the house will eventually sell for as well as the listing price they recommend. 

Clean up and purge

If you have lived in your home for a long time there is a good chance that the home is packed to the gills with your possessions and even your adult children’s stuff. 

Cleaning up, decluttering and insisting your children moving their childhood memories to their own home is important. Sell or donate things you won’t need in your new location (the snowblower if you are moving to Florida) and declutter your home before putting it on the market. If necessary, rent a storage unit to store excess items so your home is nice and clean when potential buyers show up. 

Make necessary repairs

If your home needs minor repairs or updates you should get them taken care of before putting it on the market. Little fixes and improvements to the curb appeal of your home can not only make it sell quicker but can increase the actual purchase price. 

A fresh coat of paint can make a world of difference, new flowers or shrubs out front or updating the lighting in the house can make a major difference in both how long it takes to sell and the final sales price. Completing small repairs will make sure that nothing crops up in the inspection that can derail the sale. 

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