The numbers are looking up for the 55-plus housing market. But there’s a question of how long these numbers will be available, according to the National Association of Home Builders (NAHB).
At a briefing during the group’s annual conference, NAHB Vice President of Survey and Housing Policy Research Paul Emrath was upbeat about the recovery of housing targeted toward seniors and baby boomers. He noted in particular that builder confidence in new, single family homes in the 55-plus market tripled in the third quarter of 2012 as compared to the same time in 2011.
“Everything is up, year-over-year,” Emrath said. “It’s an indication that we’re starting to dig out of the hole we fell into in 2009.”
In NAHB’s forecast, boomers and seniors are projected to grow their share of the market over the next few years. By 2020, the group expects the market share of U.S. households in the 55-plus age bracket to grow more than four percent, to 46.6 percent.
Yet Emrath warned that the future of NAHB’s reporting on boomer and senior markets is in peril because the Census Bureau changed the way that they collect generational information.
“The forecast that you just saw is at risk right now,” Emrath said. “When I get back to Washington, I’m going to spend a lot of time writing letters trying to persuade [HUD and the Census Bureau] that they were misguided in removing these 55-plus questions from their surveys.”
In addition to the economic data, Emrath hit a few of the boomer and senior highlights of NAHB’s new consumer preference survey, called What Home Buyers Really Want. Continue reading »
Miami is known for its colorful vibrancy, but 23,000 vacant condos put a dark cloud over the south Florida market at its peak inventory in 2008. Do you know what happened? They’ve all sold — largely due to the purchasing power of international investors.
As foreign buyers’ interest in U.S. real estate continues to surge, REALTORS® are seizing this opportunity and arming themselves with education.
CIPS course at the Chicago Association of REALTORS®
A window into this trend could be seen in Chicago this week as about 20 REALTOR® students, some who traveled from several states away, attended the Certified International Property Specialist (CIPS) course at the Chicago Association of REALTORS®. I had the pleasure of sitting in on the first day as instructor David Wyant of Wyant Realty and Across Borders School of Real Estate in Ormond Beach, Fla., covered local markets. CIPS is a real estate designation that has seen exponential growth, with more than 2,000 recipients and courses taught in 50 countries.
Why are foreign buyers eyeing the U.S. real estate market?
Is it because the value of the dollar has fallen? Yes, the lower dollar value equals deals for foreign buyers. But according to Wyant, that’s one reason among many.
“Investing in real estate is great for individuals and for sovereign nations,” Wyant explained. “Real estate has its ups and downs, but it’s never worth nothing. It’s tangible, it holds its value and it’s around for a long time.”
Of all the countries in the world, the U.S. is still leading the way in providing the most stable and secure real estate investment environment, above Germany, Canada, France, Australia and the UK. Why? The stability of the economy and laws the U.S. has protecting private property rights. “That means a lot if you’ve ever had anything taken away from you,” Wyant said.
The internet has helped quicken globalization. It’s led to the migration of jobs across borders, and as countries evolve and economies diversify or move from farming to industry, creative centers have emerged and trade has expanded. Sunsetting tariffs, 24-hour markets, ease of air travel, and countries specializing in specific industries and trades have all contributed to globalization.
Who’s buying in the U.S.? Continue reading »
By Erica Christoffer, Multimedia Web Producer, REALTOR® Magazine
Developers of multifamily homes should be relishing in the fact that demand is incredibly strong. But in reality, developers are struggling to build new apartments because financing is so hard to come by.
The National Association of Home Builders is forecasting the construction of 208,000 multifamily residences in 2012, which is well below the 350,000 units needed to maintain balance in the market, according to Sharon Dworkin Bell, NAHB senior vice president for multifamily and 50-plus housing.
Bell, who spoke on a panel during the NAHB International Builders’ Show in Orlando last week, said that the demand for new apartments will only continue to grow as the economy improves and job seekers find employment.
What’s more, the young adult population entering the job market today is one of the largest in U.S. history, which is creating even more demand for multifamily real estate, said Ron Witten, president of Witten Advisors, a market research firm that works with multifamily developers.
“As an industry, we can’t keep up with this demand right now. This is likely to put inflationary pressure on rents, resulting in higher rents for consumers,” Witten said.
The multifamily market suffered a serious slowdown in production from 2008 to 2010, and now the lack of credit to finance the development of new apartments is likely to cause a supply and demand imbalance, according to the NAHB panelists. Continue reading »
By Erica Christoffer, Contributing Editor, REALTOR® Magazine
A recent study released by CEOs for Cities shows homes located in walking-friendly neighborhoods–with nearby amenities such as parks, schools, libraries, restaurants, and coffee shops–sell at higher prices than homes in less walkable neighborhoods.
The data, provided by ZipRealty, was compiled from 94,000 real estate transactions in 15 U.S. markets. Continue reading »
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