50+ Home Builders Optimistic

April 29 – Your editor just spent a few days in the City of Brotherly Love attending the National Association of Homebuilders (NAHB) 50+ Builders Show: Building for Beyond. While you might expect that any convention of home builders in this economic climate would be a downer, this conference was anything but. Builders, at least the obviously successful ones who gathered here in Philadelphia, are a resilient and resourceful bunch.  It was obvious from their questions and comments why these builders have been so successful:  they want to build the homes and communities that satisfy the changing (more…)

Closeness to Family is Primary Consideration for Baby Boomers’ Move to Active Adult Communities

April 28 – A much larger percentage of baby boomers now cite ”being close to family and friends” as their primary motivation for selecting an age-qualified active adult community. The sharp increase, from 19.7% in 2001 to 39.9% in 2007, represents one of the most striking conclusions from a study released today at the NAHB`s Building for Boomers & Beyond: 50+ Housing Symposium in Philadelphia. The study was produced by the National Association of Home Builders (NAHB) and the MetLife Mature Market Institute (MMI). The data is significant because by 2010 the Boomers will represent one quarter of the U.S. population.

Design is the other critical factor
Americans who are 55+, in addition to being family oriented, are also very picky consumers. Design is very important to them – the study found that the design of the home and community is a primary consideration in choosing a new community. Buyers of active adult communities will also go to great lengths to find just the right new home; they typically visit an average of 12 homes before making a purchase.

“The Baby Boomers’ influence on housing choices has been profound, and will have a huge impact on trends in housing for the mature market as that age group continues to move toward retirement,” said Sandra Timmerman, director of the MetLife Mature Market Institute. “Some findings, such as the tendency for buyers in 55+ communities to continue to work in greater numbers and for longer periods of time, show us that this group is redefining the traditional notion of retirement to suit their lifestyle choices.”

The multi-phased study, “Housing for the 55+ Market: Trends and Insights on Boomers and Beyond,” examines a number of trends and behaviors of the important boomer segment and the population in general. The research, released during NAHB’s Building for Boomers & Beyond: 50+ Housing Symposium in Philadelphia, includes an in-depth profile of the 55+ market, based on figures from the U.S. Census Bureau’s American Housing Survey from 2001 through 2007.
Although the data covers all types of housing and households, the research concentrates on age qualified active adult communities, other non-age-qualified 55+ owner-occupied communities (not explicitly age-restricted but nevertheless occupied primarily by people age 55+), and age restricted rental communities.

The research showed that while most 55+ consumers prefer to stay in their current home as they age, an increasing number (3 percent, compared to 2.2 percent in 2001) will opt for an age-restricted community designed to attract “active adults” with a heavy emphasis on lifestyle. The analysis also confirmed that while most consumers were generally happy with their current homes, residents of age-restricted active-adult communities had the highest satisfaction rates.

The research noted that those who were residents of multifamily dwellings often sought less expensive homes. Of the Baby Boomers who are close to the traditional retirement age of 65, many are not yet planning to retire, are looking for a community close to their place of employment, or one that allows them to transition into a work-from-home situation. The number of people who chose a community close to work increased from 11.4 percent in 2001 to 16.6 percent in 2007.

And while there is increasing interest in age-restricted housing among mature adults, the number of units being built has decreased with the downturn in the economy. Not coincidentally, sales of new homes for active adults have fallen off as interested buyers either cannot sell their current homes, or simply decide to wait for a more stable market.

Download the research from the MetLife Mature Market Institute at www.maturemarketinstitute.com under “What’s New.”

Internet Has All the Tools – For Homebuying

Buying your retirement home might be a lot easier than any house you ever purchased before, thanks to an ever-expanding list of internet tools. Not only do new websites keep cropping up in familiar areas, but they are arriving with new services as well. This article will provide a quick roundup of the online services that can make purchasing your active adult or 55+ community a lot easier.

Mortgages
Type in “mortgages” into your search bar and you will find companies eager to offer you a mortgage. Given the recent publicity about mortgage predators, you should tread carefully. Get more than one opinion, shop locally, and get the opinion of your legal adviser before you act.

Credit rating services
There are a number of places on the internet where you can find out your credit rating, a number that is very important when you go mortgage shopping (the lower your rating, the more your mortgage might cost. If it is not high enough you might not qualify). You can a free report from annualcreditreport.com, a combined service of the 3 major credit reporters.

Home Prices
The days are over when homeowners went to these sites to see how much their home values have increased.  But these websites can be very useful for both buyers and sellers in getting a sense of current values. Zillow.com, city-data.com, realestate.yahoo.com/ are just some of them. The most reliable data is available for the largest cities – and that data is available from the National Association of Realtors and Case-Shiller.

Appraisals and Inspections
There are a number of online places to search for appraisals and inspections of real estate you might be interested in buying. One that offers a free checklist is Housemasters

Real Estate Agents
A talented local real estate agent is always going to be the best tool for finding a home in any community – there local knowledge is very valuable. There are a number of online directories that can help; if you search on the internet for “real estate agents” you will find them. One of the most reputable sources is from the National Association of Realtors. Their directory is available at http://www.realtor.org/rofindrealtor.nsf/pages/FS_FREALTOR?OpenDocument

Online Bidding

Perhaps the newest service available for homebuyers is the online auction. The grandaddy of all auction sites in ebay.  They have a full inventory of homes, lots, commercial property, time shares, and vacation homes.  The recent explosion of foreclosed and distressed properties is producing a mini-explosion of new online auction sites. Realtybid had 16 properties available in North Carolina on a recent visit, including 2 nice looking properties in Rocky Mountain. One 3BR/ 2BA sold for $79,000 and another had a top bid of $50,000 on the last day of bidding. The site had 116 properties listed in Florida, of which 25 were still in the bidding process. Prices look low!
Another start up that looks very interesting is bidonthecity.com, a site that specializes in New York City real estate. This site only had 6 properties for sale (their auctions begin every so many days). The nicest of those was a 6 story brownstone off of Park Avenue with an initial bid of $15 million! An online auction that appears to be a joint venture with the LA Times is Zetabid.com, which lists upcoming auctions in parts of Florida and California.
Another source of online auctions is the IRS, which is always auctioning off property collected from tax defaulters. For their current list of properties (some of which sound very appealing), go to the IRS website.

As with all auctions, it is buyer beware. On the Internet, that goes double. Our recommendation is that if you have the appetite for an online  real estate auction, you should do all your due diligence including site visits, inspections, etc.  Otherwise, that 17 acres you just bought for a song might not be build-able!

Emails and Text Messages

The New York Times had a recent article in late April detailing how text and email messages are transforming real estate transactions.  They allow much more instantaneous communications, but caution should be exercised. Review carefully what you write before you send it!  You want to be accurate and you also want to be professional – striking the wrong tone could end up losing a deal.

Top 6 Things to Look for in a Home Inspection

It’s April so it must be Home Inspection month. If you are thinking about buying a new home for retirement this is a good time to get acquainted with the basic items to look for when buying a home. This is particularly true in this era of short sales and foreclosures, where preventative maintenance probably wasn’t kept up with. Editor’s note: We have to confess we felt a little superior when we saw this topic in a headline. But guess what – most of these concerns hadn’t even occurred to us.

The folks from Housemasters have provided a list of their top 6 home inspection tips.  Follow the link to BuildingonLine to get the full details:
1. Too many extension cords. When you see this you are looking at a home that probably doesn’t meet today’s electrical codes
2. Low water pressure or gurgling. Chances are there is a plumbing problem with the pipes, and it probably won’t be cheap to fix.
3. Horizontal foundation cracks. Hydrostatic water pressure from below is probably the culprit. Excavation and expensive repairs might be needed.
4. Musty smell in basement. If you see belongings stacked off of the floor and there is a musty smell, the basement probably takes on water.  Sometimes fixing this problem can be simple.
5. Wall or ceiling stains. Moisture is the culprit and you need professional assistance determining the cause and remedy
6. Vacancy. Particularly in the southern U.S., any vacant home is likely to have mold. Remediation can be expensive.  Broken water pipes in the north could lead to mold there.

Topretirements would like to add a few other concerns to Housemaster’s excellent list:
1. Rodent infestations. Mice can live in the walls if they have access (usually where pipes go through the foundation or other gaps). Getting rid of their smell and allergens is a pain.
2. Contaminants like asbestos and radon. Requires professional remediation.
3. Bugs. Termites and powder post beetles cause serious problems.
4. Sagging floors and walls. Something is amiss structurally.
5. Outdated HVAC systems. To avoid throwing away energy you will need to upgrade.

All this said, there is no substitute for a home inspection by a competent professional. Every time we have used one, we were glad to find out the flaws that never occurred to us. And with new homes sitting on the market longer,  the inspection is still a good idea even on a brand new house.

Conference to Discuss Baby Boomers Housing Trends

You know you are a force when industry experts call a conference to discuss how to best serve your needs. The National Association of Home Builders is hosting a conference in Philadelphia (April 27-29), “Building for Boomers & Beyond: 50+ Housing Symposium”.

The conference will bring together builders and a host of experts to discuss how to best meet baby boomer needs as this huge group gets ready for retirement living. Keynote speakers include Mark Zandi, Chief Economist & Co-Founder, Moody’s Economy.com; and Dave Crowe, NAHB Chief Economist.  Some of the planned sessions include a bus tour of active adult communities in Philadelphia’s northern suburbs. There will be a case study on Chatfield Farms: Redefining a 55+ Lifestyle Community.

Your Topretirements editor will be attending the conference to try to glean some insight into what might be coming up for baby boomer housing. Some of the sessions we are interested in attending include “Developing Active Adult Communities: A New Model for the Baby Boom Generation” and ” Boomers in the City: Designing for an Urban Lifestyle”.

For more information on the conference go to the NAHB.  Stay tuned for our report in the coming weeks.

See also: “Top 10 Trends in Active Adult Community Trends – 2009“

Predicting How Baby Boomers Will Change Retirement

We’re the generation that thinks we own the trademark on youth, but now ironically headed for retirement. A lot of experts are trying to figure out how we will impact the multi-billion dollar retirement market when we hit it in force in the next few years.
Many experts agree that a significant portion of baby boomers will thumb our noses at the stereotypical retirements of our parents. To those of us who grew up in the Age of Aquarius, selling the split level and spending our days playing golf and shuffleboard at Leisure Acres is just not very appealing.

A broader consensus believes that we will be searching for retirement lifestyles that are youthful, interesting, and fulfilling.  Consider this statement from Matt Thornhill of the Boomer Project: “The typical Boomer at 50 feels like 35. Mid-life extends from 50 to 75. Boomers have decided to put off old age. That’s something for the future. They think they’re never going to be seniors; they’re Boomers.” Or this one from Gene Warren, Retirement Consultant: “They (FL and AZ) are what our parents and grandparents were looking for. They are nice warm places where people can sit around. The boomers are looking for something different. They are looking for activities, for lifestyle.”
The first rule when it comes to categorizing baby boomers is – don’t try this at home! We are way too big a group for broad generalizations.  That said, here are some of our predictions (and please give us yours via the Comments box at the bottom!):
-    Boomers will do whatever they want to do. So their retirements will go off in a million directions – from the conventional to the completely wild.  Retirement options will change as a result.
-    Conventional retirement communities (55+, active adult) will change in many significant ways. Once a critical mass of boomers move into them these communities will become more casual, less hierarchical, and more individual.  And the services they offer will change as well.
-    Baby boomer finances will be part of the picture. Although there are millions of boomers who are very well off, more of us are going to be facing a tough financial future. Our savings are low, 401ks are shredded, and pensions aren’t as good as our parents’. Faced with keeping up the lifestyles we’ve become accustomed to, we are going to get creative. Retiring later, finder lower cost states and towns, working in retirement, even retiring out of the country will be more common.
-    Mobility and flexibility. We’ve moved all over the country in our careers and a move isn’t that big a deal. We’ll be more willing than previous generations to move to a college town, small town, big city, or new area if that means a better retirement.
-    Fulfillment. There is a significant segment of baby boomers for whom personal responsibility and fulfillment is very important. After working a lifetime for the man, many of us will be interested in doing some good for the world in their retirement. Volunteer organizations should start getting ready to exploit an important new labor source.
Please share your thoughts in the Comments section below. We’d like to hear!

Sun City Parent Co to Merge with Centex

In a proposed merger that will create the largest homebuilder in America, Pulte Homes will combine with homebuilder Centex in an all stock deal. Pulte Homes is the parent company of the Anthem and Del Webb brands, the latter which brings you the huge Sun City active adult communities around the U.S.
The combined company, which will have $3.4 billion in cash, will use the Pulte name. Centex tends to specialize in entry level and first and second move up homes, while Pulte is known for its presence in the active adult segment of the market.

One reason given for the merger, other than operating efficiencies, is the attraction of the large landholdings owned by Centex in Texas and the Carolinas. These markets have been less affected by the housing meltdown than many others. The combined company will have operations in 59 markets and 29 states.
The merger appears to make sense in that it creates relatively little redundancy and in fact strengthens both companies.  Our prediction: when the market recovers, look for more Pulte and Del Webb projects in the Sunbelt.

Retired, No Job, No Income – Opportunity Knocks!

It’s happened to so many people lately. Folks in their 50′s and 60′s go in to work one day and find themselves retired by the end of it. While they might have looked forward to that time off a few years ago, this news, combined with their plummeting retirement portfolios, is frequently a major cause of concern and even desperation.

Fortunately there are many opportunities for baby boomers who find themselves in earlier retirement and with fewer resources than they had planned.  This article will explore some ideas to get you back on track.

Early retirement is the shock that forces most people to take stock of their resources and interests. The first decision is:  “do I need to go back to work to support myself to the level I feel comfortable. Or, can I retire successfully because I either have enough resources, or can I downsize or move to a lower cost residence or state and make up the difference.” If you decide that you either need to keep working for the money, or you want to work because that’s what you enjoy, you face another round of questions.

What are Your Skills? The Director of Human Resources of the Wharton School of the University of Pennsylvania had this advice in the NY Times for retired people who view their careers as successful: “…(make) use of the skills you acquired over the years. (Otherwise) you’re going to be competing in the job market without a competitive advantage.” So, his advice to a CPA would be not to go back to school for a marketing degree.

Part Time and Contract Work: Particularly for boomers with marketable skills, consider part-time or contract work. It often pays more per hour than a salaried position, and it offers the flexibility most retirees are looking for.

What are Your Interests: If you had a career but either never particularly enjoyed it, or it changed over time to something you wish you weren’t doing, maybe it is time to change careers. Perhaps now might be the ideal opportunity to spend a year in the Peace Corps (see NY Times article). Or, maybe you should go back to school and pick up some skills and a competitive advantage in the job market. Even if you don’t want to go back to work, school might be just the ticket to an exciting new hobby or passion.

Going Back to School: Many professionals admit to feeling a bit snobby toward community colleges. If that is the case with you, here’s our advice: “Get over it.” America’s community college system has made tremendous strides in being relevant to today’s world. In fact they are often so successful that many of their snottier competitors should blush. A lot of the community college success comes from their partnerships with local employers, who have advised the schools to focus learning on the skills they are looking to hire. IT, health care, education, and specific technical skills are still in demand even in this economy. The degrees and certificates that qualify you for these jobs are readily available at your local community college. And the good news is you can get them for a fraction of the cost and time required at traditional higher education institutions.

Interested in Starting a New Career?
Your local community college is a tremendous resource to help you start thinking about what kind of work you might like to do. So check out your nearest community college. From advanced cake cake decorating to Quick Books accounting to introduction to glass blowing to a building sustainability inspection certificate program, you will find programs to fulfill almost any boomer dream. Their online catalogs show an amazing variety of courses, degrees and certificates  -many available as distance learning.  Community colleges specialize in retraining to develop skills for the jobs most in demand today. Tuition for seniors is often reduced or subsidized, an added bonus.

What is happening with you? Have you been retired and then decided to go back to work? Share your thoughts in the Comments section below.