Category: Retirement Real Estate
September 15 - An inevitable but painful result of the slowing of the housing market is that many new retirees are having to postpone planned moves to a new retirement community. The stumbling block is of course their inability to sell their primary residence, typically most retirees' biggest assets. A September 13 article in the Housing Bubble Blog recounts the woes in several important California markets. The article mentions the limbo-like situation this has created for Ken Gonzales and his wife, forcing them to postpone their plans to downsize to a retirement community. Unfortunately they cannot get their price for their four-bedroom house in Riverside's Orangecrest community.
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Published on September 14, 2007
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Category: Retirement Real Estate
September 6 -- Many people, particularly those living west of the Mississippi, have considered at one time or other retiring in Mexico. After all the cost of living is usually less than half what it is in the U.S. or Canada, the winter climate is warm, and the scenery and adventures are amazing.
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Published on September 5, 2007
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Category: Retirement Real Estate
August 28 -- If you have been thinking about buying a retirement condo a recent news item in the Wall Street Journal might give you some pause. It seems that the condo market is now experiencing troubles as speculators default on their mortgages or fail to execute their purchase contracts. As banks and developers are forced to unload properties in a distressed market prices are falling, causing underwriters to lower appraisals and make loans harder to get. Feeding the fire is a rapid growth in newly built units - construction of new condos increased 145% in 2006, the highest level since 1985. It appears that new condo projects and condo/hotel conversions are the properties experiencing the most difficulty. Obviously most of these properties are not being built as retirement condos or in retirement communities - but the bad news in general markets is not without an effect on the active adult retirement market either.
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Published on August 27, 2007
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Category: Retirement Real Estate
August 7 -- For most people hoping to buy a home these days the "bad news that's really good news" just got worse. What we mean by that is that the reeling real estate market, which is experiencing lower prices and increased inventories favorable for buyers, is also now under a credit siege. Dozens of mortgage companies have gone out of business so far and the market for even the highest quality mortgages is slowing to a standstill. There might be plenty of homes for sale, but if you need a mortgage you either might have trouble getting it, or you might have to pay more for your loan.
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Published on August 7, 2007
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Category: Retirement Real Estate
July 29 -- Countrywide Financial advised yesterday that more mortgages from people with good credit were having trouble making payments, news which sent the financial markets into a tailspin. Countrywide is the largest mortgage lender in the country. Hardest hit markets were the some of the strongest and biggest ones - California, Florida, Arizona, and Nevada.
Up to now the bad news in mortgages has mostly had to do with so-called sub-prime mortgages, those underwritten to borrowers with lower quality credit. The news that more mainstream borrowers on prime second-liens (a line of credit or second mortgage backed by a primary mortgage) are defaulting hit the stock market hard, sending the S & P 500 index down 2 percent, or just more than 30 points.
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Published on July 25, 2007
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Category: Retirement Real Estate
June 28 -- The latest in a steady string of depressing news for sellers of retirement communities continued this week. Sales of all types of existing homes and condos fell 10.3% in May from the year ago period, and median prices fell 2.1% (Source: National Association of Realtors). The worst news, for sellers, was that number of homes listed for sale increased to an 8.9 months supply. These increasing inventories were unwelcome for two reasons: a rising figure predicts slow sales ahead, and inventory levels rarely rise in May. Families with children often buy in this month so they can move over the summer.
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Published on June 28, 2007
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Category: Retirement Real Estate
June 26 -- It's every would-be real estate investors dream. A perfect active adult community property comes on the auction block in a distressed market - and you snap it up for hundreds of thousands of dollars less than its market value. As real estate auctions make a comeback these days more and more people - including baby boomers looking for a retirement condo or house in an over 55 community - are catching the auction fever.
In Riverside California this past May over 1200 would-be investors had their chances when 100 properties in that region were auctioned off. So how many realized their dream? According to a recent New York Times article, not many people came away with significant savings.
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Published on June 25, 2007
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Category: Retirement Real Estate
June 15, 2007 -- Could more bad news possibly hit the real estate market that so many active adults are studying? A quote in today's Wall Street Journal regarding homeowners who are entering the foreclosure process is typical of recent fare - "rates for the last 2 quarters are the highest in the (Mortage Bankers Association) survey's 37 year history." Other bad news items in the last few days are that the number of homes for sale keeps growing (up 5% in May), and pending sales were also down in April.
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Published on June 15, 2007
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Category: Retirement Real Estate
The April figures for sales of existing homes are in, and the news isn't so great for sellers. April sales were down 2.6%, following a March drop of 7.9% from February. According to figures from the National Association of Realtors, April sales declined 10.7% from the year ago period.
While figures on sales of active adult and retirement community homes and condominiums are hard to come by, it stands to reason that the overall market weakness is also having a negative affect on this segment. But for baby boomers considering purchasing a new home, the news is probably positive. Continued pressure on sellers and greater inventories should mean price flexibility and better selection. Is the time to buy nearing?
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Published on May 29, 2007
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Category: Retirement Real Estate
May 19, 2007 -- For baby boomers trying to figure out whether this is the time to buy into a retirement community, the recent news is balanced. There is some good news, bad news, and neutral news. On the whole it seems like this is still a buyers' market, although no one can predict if the bottom has been reached.
On the economic side:
Good news: New unemployment claims are down for the 5th straight week (Labor Department)
Not quite so good: Consumer prices and leading economic indicators from the Conference Board's April figures are down slightly
Reassuring: Federal Reserve Chairman Ben Bernanke commented on the sub-prime mortgage problem that he "does not expect significant spillovers (from it) to the rest of the economy". He was cautioning Congress not to pass legislation toughening lending laws
Disappointing: Housing starts fell to their lowest levels in 17 years, according to the New York Times
Positive: New home construction rose in April
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Published on May 18, 2007
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