Baby Boomers Cashing In On Real Estate Wealth
In the hottest real estate market since the apex before the Great Recession, Baby boomers, (those born between 1946 and 1964), have the biggest share of real estate wealth in the U.S. And with today’s market and escalating prices, many in this group are cashing in.
Nationwide sellers collected an average of $66,000 on the sale of their homes –a $6,000 increase from the previous year and 99 percent or more of their asking price, according to the National Association of Realtors 2021 Home Buyers and Sellers Generational Trends Report.
Though homeowners of all ages can leverage this equity and sell for big gains, baby boomers are uniquely primed for gains. These homeowners have often lived in their homes for decades and, in many cases, paid off their mortgages completely.
Those profits can help boomers achieve any number of financial goals, from padding their nest eggs or making investments to buying a new house or even retiring early.
Recently, the largest group of sellers – 43 percent – is the baby boomer generation. These folks are electing to sell their homes for a variety of reasons, but the top two are wanting to buy a home closer to family and friends or opting to downsize.
While a number of sources often blame the boomers for the current housing shortage, it’s really only one aspect of the housing shortage. Other factors include builders not being able to keep up with supply, zoning restrictions, pandemic-related foreclosure moratoriums, and investment firms that snatch up single-family homes and turn them into rentals.
Despite airtight inventory, it’s still a good time to buy a home instead of waiting around for prices to drop. Real estate is an appreciating asset that can build wealth over time. Although median listing prices are higher than ever, the value of real estate is still predicted to appreciate over time.
The low inventory has certainly made the housing market more competitive, prospective homebuyers have an advantage when it comes to taking out a mortgage. Current mortgage rates are hovering near record lows, which means there’s never been a better time to take out a home loan or refinance your existing mortgage.
Buying a home in today’s hot real estate market may be challenging, but it can still be a worthwhile investment — especially in this environment of historically low mortgage rates.
If you’re considering buying or selling a home working with an experienced real estate agent who’s familiar with your local market is key. As a leading real estate group in the Pikes Peak region, The Platinum Group Realtors are experts at helping buyers and sellers understand their market and how to make the best of your current circumstances.
The number one independent real estate firm in Colorado Springs, The Platinum Group combines top Realtors with the best tools and resources to provide home buyers with platinum service and platinum results.
For a no-obligation consultation, call The Platinum Group at (719) 536-4478.