Archives for April 2012

By 2050, the population of Americans 65 and older will more than double and is expected to grow at a faster rate than any other age group, according to U.S. Census data. By that time, one in five Americans will be over the age of 65, and a new report says that growing population will likely face increasing difficulty in finding suitable housing to meet their needs.

The report from the Center for Housing Policy (“Housing an Aging Population — Are We Prepared?”) warns a severe housing cost burden is looming for the country as the older adult population soars.

Older adults are more likely than younger adults to spend more than half their income on housing, the study found. Home owners who are 65 and older are more likely than younger households to have their mortgages paid off, but other housing-related costs continue to bite into their more limited incomes. Property taxes, home maintenance, and utility costs continue to be a burden to even mortgage-free home owners, the study says.

“As the older population grows, meeting the housing needs of older adults is certain to become a significant challenge across the nation,” says Rodney Harrell, a policy adviser at AARP’s Public Policy Institute. “States and communities need to effectively respond by adopting policies that ensure adequate, affordable housing for people of all ages.”

The report calls for a variety of housing to meet the needs of older adults, including a growth in assisted-living residences, continuing care retirement communities, and congregate housing. The authors also urge for the availability of housing grants and loans to assist with modifying a current home so older adults can age-in-place as well as property tax abatement or housing voucher programs to help alleviate housing costs.

Source: “Growing Ranks of Older Adults Face Housing Crunch,” RISMedia (April 8, 2012)

Shift happens! We are watching it live and in action! Last year distressed properties made up 25% of active listings, this year it is 17%. Pending sales were 51% distressed homes and this year they comprise only 18% of pended sales .

Fueling the market is better job news, low interest rates, improved consumer confidence, increasing rental rates, spring weather, some positive press and 4 years of pent up demand.

Units pending in NWMLS were second to 2006 numbers. Multiple offers abound! This demand is stabilizing prices in many areas and some neighborhoods are experiencing increasing prices. Some homes that went off market last year and relisted recently have sold quickly.

Holding the market inventory back are homeowners with little or no equity. People who would have been considering a move based on past turnover rates are staying put, and those who do not know the market is turning. Appraisals may be tricky with prices creeping up quickly in areas of little or no inventory.

Although median prices still show an overall decline, in some Several Eastside areas increases were strong, 9 to over 15%. City center areas experienced significant change, 11-31% increases in median price over last year!

Some homeowners may not be aware of the market improvements and the fact that according to Lennox Scott “Close to job centers, 45% of new listings are selling within a single month.”

Pending sales would likely be higher if more inventory was available to anxious and motivated buyers.

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If you are either buying or selling a home in today’s market, you need a real estate expert. However, we must realize what the term ‘expert’ actually means. An expert in any area cannot give perfect advice as no one can predict the future. But they can give excellent advice based on their insight into their field.

If you go to an attorney with a legal challenge, he/she will look over your case and give you your options. They realize they cannot guarantee the outcome of any of the options. Still, they give the best advice possible and allow you to decide the option with which you feel most comfortable. They then will put together a strategy which hopefully will bring about the most favorable conclusion.

If you go to a doctor with a serious ailment, he/she will give you your options and work with you to develop the best treatment program. They cannot guarantee any program’s success. They will, however, monitor your progress and adjust your treatments or medications. They will stand next to you until the best result is achieved.

Real estate is no different. A true real estate professional will understand your options and simply and effectively explain them to you and your family. Once you chose an option, they will strategize a plan to help you accomplish your goals. They will standby you as the process evolves and will help you make the necessary adjustments if necessary.

They cannot see the future any better than doctors or attorneys and thus their advice will never be perfect. However, just like those other professionals, an expert agent will give you excellent advice that will bring about the best possible outcome.

By the KCM crew