Real Estate Blog
Wednesday, November 30 2011
New-home sales for single-family homes rose 1.3 percent in October, marking the best pace for new-home sales activity since this May, the U.S. Commerce Department reports.
Following the sector’s worst year for new-home activity on record last year, several recent reports are suggesting a pick-up in new construction.
"Builders have been seeing some marginal improvement in sales activity over the past few months, particularly in select markets where consumer confidence is higher due to improved economic conditions," Bob Nielsen, chairman of the National Association of Home Builders, said in a statement. "While this trend is encouraging, overall sales activity is still well below normal due to the effects of overly tight credit conditions for builders and buyers, the continued flow of distressed properties on the market, and inaccurate appraisal values on new homes."
Despite the October gain in sales, new-home sales for the month were at an annual rate of 307,000--still less than half the 700,000 in sales that most economists consider healthy for the housing market.
A Regional Look
A break down of sales by region in October:
- Midwest: Rose 22.2 percent
- West: Rose 14.9 percent
- Northeast: Stayed flat
- South: Declined 9.5 percent
Inventory Drops Drastically
Nationwide, the inventory of new homes for sale stayed at an all-time record low of 162,000 units in October.
"Particularly encouraging is the fact that builders continue to hold down their inventories to match the current sales rate, with the number of new homes for sale now down to a sustainable, 6.3-month supply," NAHB Chief Economist David Crowe said in a statement.
By Melissa Dittmann Tracey, REALTOR® Magazine Daily News
Tuesday, November 29 2011
The following is the text from the NAR’s quarterly commercial real estate forecast release.
Growth in Commercial Real Estate Markets Expected in 2012
Commercial real estate markets have been relatively flat this year, but improving fundamentals mean a more positive trend is expected in 2012, according to the National Association of Realtors.
Lawrence Yun, NAR chief economist, said there is little change in most of the commercial market sectors. “Vacancy rates are flat, leasing is soft and concessions continue to make it a tenant’s market,” he said. “However, with modest economic growth and job creation, the fundamentals for commercial real estate should gradually improve in the coming year.”
The commercial real estate market is expected to follow the general economy. “Vacancy rates are expected to trend lower and rents should rise modestly next year. In the multifamily market, which already has the tightest vacancy rates in any commercial sector, apartment rents will be rising at faster rates in most of the country next year. If new multifamily construction doesn’t ramp up, rent growth could potentially approach 7 percent over the next two years,” Yun said.
Looking at commercial vacancy rates from the fourth quarter of this year to the fourth quarter of 2012, NAR forecasts vacancies to decline 0.6 percentage point in the office sector, 0.4 point in industrial real estate, 0.8 point in the retail sector and 0.7 percentage point in the multifamily rental market.
The Society of Industrial and Office Realtors, in its SIOR Commercial Real Estate Index, an attitudinal survey of 231 local market experts,1 shows the broad industrial and office markets were relatively flat in the third quarter, in step with macroeconomic trends. The national economy continues to affect the sectors, with 92 percent of respondents reporting the economy is having a negative impact on their local market.
Even so, the SIOR index, measuring the impact of 10 variables, rose 0.6 percentage point to 55.5 in the third quarter, following a decline of 2.6 percentage points in the second quarter. In a split from the recent past, the industrial sector advanced while the office sector declined.
The SIOR index is notably below the level of 100 that represents a balanced marketplace, but had seen six consecutive quarterly improvements before the last two quarters. The last time the index reached the 100 level was in the third quarter of 2007.
Construction activity remains low, with 96 percent of respondents indicating that it is lower than normal; 88 percent said it is a buyers’ market in terms of development acquisitions. Prices are below construction costs in 83 percent of markets.
NAR’s latest COMMERCIAL REAL ESTATE OUTLOOK offers projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data for metro areas were provided by REIS, Inc., a source of commercial real estate performance information.
Vacancy rates in the office sector are expected to fall from 16.7 percent in the current quarter to 16.1 percent in the fourth quarter of 2012.
The markets with the lowest office vacancy rates presently are Washington, D.C., with a vacancy rate of 9.3 percent; New York City, at 10.3 percent; and New Orleans, 12.8 percent. After rising 1.4 percent in 2011, office rents are forecast to increase another 1.7 percent next year. Net absorption ofoffice space in the U.S., which includes the leasing of new space coming on the market as well as space in existing properties, is projected to be 20.2 million square feet this year and 31.7 million in 2012.
Industrial vacancy rates are projected to decline from 12.3 percent in the fourth quarter of this year to 11.7 percent in the fourth quarter of 2012.
The areas with the lowest industrial vacancy rates currently areLos Angeles, with a vacancy rate of 5.2 percent; Orange County, Calif., 5.7 percent; and Miami at 8.4 percent.
Annual industrial rent should decline 0.5 percent this year before rising 1.8 percent in 2012. Net absorption of industrial space nationally should be 62.0 million square feet this year and 41.2 million in 2012.
Retail vacancy rates are likely to decline from 12.6 percent in the current quarter to 11.8 percent in the fourth quarter of 2012.
Presently, markets with the lowest retail vacancy rates includeSan Francisco, 3.7 percent; Long Island, N.Y., and Northern New Jersey, each at 5.7 percent; and San Jose, Calif., at 6.0 percent.
Average retail rent is seen to decline 0.2 percent this year, and then rise 0.7 percent in 2012. Net absorption of retail space is seen at 1.2 million square feet this year and 13.5 million in 2012.
The apartment rental market - multifamily housing - is expected to see vacancy rates drop from 5.0 percent in the fourth quarter to 4.3 percent in the fourth quarter of 2012; multifamily vacancy rates below 5 percent generally are considered a landlord’s market with demand justifying higher rents.
Areas with the lowest multifamily vacancy rates currently areMinneapolis, 2.4 percent; New York City, 2.7 percent; andPortland, Ore., at 2.8 percent.
Average apartment rent is projected to rise 2.5 percent this year and another 3.5 percent in 2012. Multifamily net absorption is likely to be 238,400 units this year and 126,600 in 2012.
The COMMERCIAL REAL ESTATE OUTLOOK is published by the NAR Research Division for the commercial community. NAR’s Commercial Division, formed in 1990, provides targeted products and services to meet the needs of the commercial market and constituency within NAR.
The NAR commercial components include commercial members; commercial committees, subcommittees and forums; commercial real estate boards and structures; and the NAR commercial affiliate organizations - CCIM Institute, Institute of Real Estate Management, Realtors Land Institute, Society of Industrial and Office Realtors, and Counselors of Real Estate.
Approximately 79,000 NAR and institute affiliate members specialize in commercial brokerage services, and an additional 171,000 members offer commercial real estate as a secondary business.
The next commercial real estate forecast and quarterly market report will be released on February 24.
SOURCE: National Association of Realtorshttp://www.realtor.org/Research.nsf/Pages/commercialhome
Monday, November 28 2011
Last December in Market Watch, I made several specific predictions about what I thought our housing market would do in 2011. My projections from last December have proven to be accurate. As I said then, the fact that we had two tax credit programs made specific monthly forecasting easier. The one area I missed a little was interest rates. I said last year that rates would rise. I still believe that rates will increase but it appears that it will take a little longer than I thought. Partially because the Federal Reserve has kept short term rates low, fixed rate mortgage loans have remained at historically low levels.
The National Association of Realtors (NAR) has forecast a 4-5% increase in homes sold nationally in 2012 compared to 2011. Although Indiana’s business environment is one of the best in the country and the unemployment rate in our area is below the national average I think that projection is a little optimistic. One reason is that we will have a hotly contested Presidential election next year. My experience is that big national elections tend to slow real estate purchases in the short run. After an election, everyone knows the winner. Those that voted for the winner are happy and positive, and those that voted the other way at least know who won and a clear path, even if not their preferred path, is better for housing than not knowing what to expect.
I expect sales locally in 2012 to increase slightly over 2011. I don’t see significant month over month changes like we had this year because there was no tax credit in 2011. Eventually interest rates and home prices will rise. Locally, inventory is still low based on historical norms. Based on low inventory, don’t be afraid to put your house on the market. There is less competition than normal. If you are thinking about buying, Lawrence Yun, the highly respected economist for NAR believes there is more upside appreciation potential than there is downside risk and I agree.
For those of you who are interested to get more information on real estate in Evansville, we invite you to log on to TheTrentiniBlog at www.EvansvilleRealEstate.info We update this blog on a regular basis and we are proud to say that our reader ship is increasing every month.
Please feel free to contact me at 812-499-9234 or at Rolando@TheTrentiniTeam.com if you have any questions.
Wednesday, November 23 2011
POSEY CO., IN - A New Harmony landmark is getting a bit of a face list.
Construction crews are replacing more than 20,000 wood shingles on the Roofless Church, which is famous for its 50 foot dome structure.
Koester Construction has been working on the Roofless Church since August.
Crews are finishing up the shingle replacement; just the tip of the dome still needs to be replaced.
Jeffrey Koester said the construction has been planned for about five years, and thousands of wood shingles were about ten years past their time to be replaced.
They've had to wait on fixing up the dome since it is so popular for weddings in the warm summer months.
Things have been running smoothly so far, according to Koester, and they hope to be finished up December.
"It's not as tough as it is time consuming and tedious. Every shingle has to be cut to fit the radius and the arc of the dome," he said.
Koester said construction wouldn't have been possible if they hadn't found the original blue print for the dome about four years ago.
Tuesday, November 22 2011
The square feet of new homes is expected to continue its decline in future years. The National Association of Home Builders predicts that U.S. houses will average 2,152 square feet in 2015, which will be down 10 percent compared to last year.
Smaller homes near restaurants and retail may be the most in demand as the housing market crawls out of its slump, housing experts say.
McMansions--which are at least 2,600 square feet--were popular during the years of the housing boom, but now are only desired by 18 percent of households today and is expected to drop more, according to a survey by Trulia.
"Baby boomers are trading down. They don't need the McMansion, and they don't want to drive as much," Jed Kolko, Trulia’s chief economist, told Money Magazine.
Source: “A Smaller House Will Make a Big Difference,” Money Magazine (Nov. 14, 2011)
Monday, November 21 2011
Repair wood floors and scratches that make rooms look worn out. We’ll show you easy ways to put the luster back into your floors.
Dogs chase kids, pans drop, chairs scrape, and soon you must repair wood floors and erase scratches that make a mess of your red oak or Brazilian cherry. A professional floor refinisher will charge $1 to $4 per sq. ft. to apply a new coat of finish. No worries. We’ve got inexpensive ways to remove wood scratches and repair deep gouges in a few easy steps.
Take some artistic license to hide minor scratches in wood floors by rubbing on stain-matching crayons and Sharpie pens. Wax sticks, such as Minwax Stain Markers, are great scratch busters because they include stain and urethane, which protects the floor’s finish.
Don’t be afraid to mix a couple of colors together to get a good match. And don’t sweat if the color is a little off. Real hardwoods mix several hues and tones. So long as you cover the contrasting “white” scratches, color imperfections will match perfectly.
Mix equal parts olive oil and vinegar, which work together to remove dirt, moisturize, and shine wood. Pour a little directly onto the scratch. Let the polish soak in for 24 hours, then wipe off. Repeat until the scratch disappears.
Spot-sand deep scratches
It takes time to repair wood gouges: Sand, fill, sand again, stain, and seal. Here are some tips to make the job go faster.
- Sand with fine-gauge steel wool or lightweight sandpaper.
- Always sand with the grain.
- Use wood filler, which takes stain better than wood putty.
- Use a plastic putty knife to avoid more scratches.
- Seal the area with polyurethane, or whatever product was used on the floor originally.
Fix gaps in floor
Old floorboards can separate over time. Fill the gaps with colored wood putty. Or, if you have some leftover planks, rip a narrow band and glue it into the gap.
Read more: http://www.houselogic.com/home-advice/repair-tips/repair-wood-floors-and-erase-ugly-scratches/#ixzz1e5XbHSvr
Friday, November 18 2011
EVANSVILLE - Downtown businesses are excited that the new Ford Center is up and running, not only from the standpoint of entertainment value, but monetary value as well.
Since the Ford Center has opened, a few events, including UE basketball and Icemen hockey games, have been held there. These events have attracted additional crowds to downtown Evansville and the surrounding stores, shops and bars have benefited.
Main Gate Sports Bar and Grill is one of those businesses. Blake Billman, manager of Main Gate, is excited about the additional customers his bar has received, and said he had great success during last weekend's Icemen game.
"We had to keep track of how many people were coming in," Billman said. "And I had to end up cutting and shutting down. We were at capacity and couldn't let anybody else in. So, great problem to have, unfortunately, you know, we can't pack the place full due to fire code and all that. But it was awesome."
Wednesday, November 16 2011
November is a great month the holidays are fast approaching, we get to visit more often with family and friends, and colder weather makes us feel like getting cozy in our homes. Since you'll want to keep warm in the coming months, we are including a list of tips for you this month that will help you to save money on your energy bill, while still staying warm and cozy!
We hope these tips help you as much as they've helped me. If you have any home or real estate questions, please feel free to call Rolando at 499-9234 or Kathy at 499-0246 at any time or visit our Web site at: www.TheTrentiniTeam.com
FIVE WAYS TO SAVE ENERGY IN THE COLDER MONTHS
· Set the timer: Program your thermostat to reach lower temperatures while you're sleeping or out of the house. This simple action can save you a lot of money and will ensure that your house stays at a comfortable temperature at all times.
· Open and shut: During daytime hours, keep your blinds, draperies and other window coverings open. This will enable your home to absorb the warm afternoon sunshine and will effectively add heat to the entire house. Close all window coverings at night to keep the heat in!
· Installation time: If you have a window or two that feels drafty no matter what you do, consider installing tight, insulating shades to those particular windows. You'll be surprised what a little bit of extra insulation can accomplish!
· Light a fire: A fireplace is an easy solution to add extra heat to your home without adding to your energy bill. Capable of warming the entire room, you and your family can relax at home while keeping the thermostat at a lower temperature.
· No leaks allowed: Check doors and windows for drafts and places where air might escape. Weatherizing windows and doors is a simple task that you can perform; your local home improvement warehouse will have all of the materials you need! improvement warehouse will have all of the materials you need!
Tuesday, November 15 2011
Tankless water heaters cut energy bills but aren’t the right choice for everyone. Here’s how to figure out if going tankless makes sense for you.
If you’re a hot water multitasker who washes clothes, dishes, and yourself at the same time, a low-capacity tankless water heater could serve you a “cold water sandwich” or leave you high and dry. But tankless water heaters, which heat water only on demand, are more energy-efficient than traditional water heaters, which warm water whether you need it or not. What’s the best way for you to get into hot water? Read on.
Traditional vs. tankless water heater
Traditional hot water heaters typically live in your basement and provide gallons of hot water at one time: an 80-gallon tank heats enough water to shower, run a dishwasher, and do a load of laundry simultaneously. But standby energy loss is significant with hot water heaters, and once you’ve exhausted the hot water supply, you’ll wait 20 to 60 minutes for the heater to cook up more.
A tankless water heater produces hot water only when you need it. When you turn on the faucet, water is heated on the spot as it flows through capillary-like pipes heated by either a powerful gas burner or electric coils. (There are no oil-fired on-demand water heaters on the market.)
Gush to a trickle
Although a tankless water heater can pump hot water all day, it can’t produce a large amount all at once. And it can snap you out of a hot shower bliss with the “cold water sandwich effect,” a sudden splash of cold water that results from turning the hot water faucet on and off repeatedly.
A traditional tank heater puts out 7.5 to 9.5 gallons of water per minute (GPM), enough to shower, run the dishwasher, and do a load of laundry all at the same time. The typical tankless water heater, however, puts out only 2.5 to 5 GPM, enough to handle only two uses at a time.
Be warned: Not all flow rates are calculated the same. Energy Star measures GPM based on a 77-degree increase in water temperature for the incoming supply, while some companies list their GPM flows at 35- and 45-degree rises. The more heat the water requires to reach the desired temperature, the slower the flow rate.
High upfront costs
A gas-fired tankless water heater system costs $1,500 to buy and install, nearly double the price of a conventional gas water heater, and $575 more than a high-efficiency tank model. In addition, while a conventional water heater typically uses a half-inch gas line, a tankless water heater requires three-quarter-inch pipe. That plumbing change costs from $25 to $40 a foot, potentially adding many hundreds to initial costs.
On the bright side, your new energy-efficient unit may qualify for a federal tax credit of up to $300 on purchase and installation through 2011.
An electric tankless water heater costs as little as $400 installed. But it doesn’t qualify for a tax credit because it is less efficient than gas and is better suited for point-of-use applications, such as instant kitchen hot water, rather than a whole-house system.
Installing multiple units
One solution to the limited output problem is to install multiple on-demand units. Because it’s small—about the size of a carry-on suitcase—you can place a tankless water heater along any stretch of pipe—in the attic, basement, closet, or crawlspace. You can install two or three units to serve different parts of the house, or even dedicate a unit for a particular use, say a washing machine.
Multiple on-demand units increase overall energy efficiency. By bringing hot water close to where it’s needed, you reduce energy loss and increase efficiency by 50% over a conventional hot water tank system, about $165 in annual savings for an average household.
Energy and money savings
- According to the U.S. Dept. of Energy, a tankless water heater is more efficient and uses less energy than a conventional water heater, providing a $25 to $107 in annual savings.
- If your hot water use is low (less than 41 gallons per day), a tankless water heater will be 24% to 34% more efficient.
- If your hot water usage is high (about 86 gallons per day), a tankless water heater is 8% to 14% more energy efficient.
- Installing an on-demand unit at each hot water faucet gives an energy savings of 27% to 50%.
Read more: http://www.houselogic.com/home-advice/water-heaters/tankless-water-heater-right-you/#ixzz1dPb6WNbp
Monday, November 14 2011
EVANSVILLE - More small-business owners are turning to Evansville to open up shop. As the downtown area develops, the Chamber of Commerce Southwest Indiana said more people are taking an interest in the River City.
The business development division at the Chamber of Commerce is seeing more action this year. The small business development center, located on Main Street, has advisors that help people turn their ideas into business plans. They see around 200 clients a year and help people put together a financial case, understand the cash flow, and find a banker. Advisors at the Chamber of Commerce said more small-business owners are coming to Evansville, because of the supportive infrastructure and skilled workers in the area. Restaurants and manufacturing jobs are experiencing the most growth.
Kim Howard, Vice President of Economic Development at the Chamber of Commerce of Southwest Indiana, said, "We're seeing a lot of people who are very interested in exploring the idea. We've had more people that have contacted us about putting together a business plan, trying to understand the market here and what might be an opportunity. People are looking at franchises now more than they had in the past"
Information on The Chamber of Commerce of Southwest IN - Business Development division:
318 Main St. Ste. 401
Evansville, IN 47708
Friday, November 11 2011
Installing a wood-burning, gas-burning, gel-fuel, or electric fireplace to your house costs $400 to $10,000, depending on the type of fireplace you select.
Installing a fireplace with a brick-lined hearth and a custom mantel can easily cost $10,000 or more. It’s also possible to get a similar look for thousands of dollars less. Just shop for a ready-made unit and watch what you spend on the fireplace surround.
If your budget is really tight, a free-standing gel-fuel or electric fireplace eliminates installation costs. But be aware that some bare-bones alternatives don’t completely succeed in mimicking a real wood fire.
Check local building codes for possible restrictions on the types of fireplaces that can be installed in your area.
Costs of a wood-burning fireplace
An open-hearth, wood-burning fireplace—like the ones you see in mountain resort hotels—requires the help of a skilled, professional mason and a budget approaching (and often exceeding) $10,000.
For an existing home, considerable renovation work is required, including a foundation to carry the weight of the firebox and chimney, and the cost of the chimney itself.
Expect to pay $7,000 to $10,000 or more.
- Cost saver tip: Go for a drywall surround and a simple, wall-mounted mantle.
Costs of a gas-burning fireplace
A fireplace unit that burns natural gas or propane runs about $2,000 for the basic materials package. Installation and finishing typically add $2,500.
- Cost saver tip: Switch to a simpler surround and mantle, and get a direct-vent fireplace so you don’t need a chimney. Or, opt for a vent-free gas fireplace for $400 or so. Hiring a professional to install a gas line or a connection to a propane tank adds about $1,000.
Your least-expensive option
A gel-fuel fireplace or an electric fireplace starts under $400. With a portable unit, that’s the total cost since the fireplace is ready to use once you remove the packaging.
Because there’s no flue or chimney, it’s easy to install TVs or other electronic gear directly above an electric fireplace. If you include a mantel package, expect to pay $800 to $1,600. One perk available: sound effects that mimic the crackle and pop of a real fire.
Estimate your energy costs by using a fuel cost comparison calculator. Gel fuel, not included in the calculator, costs $3 per 13-ounce can, enough for three hours.
For a wood-burning fireplace, figure on $100 to $200 a year for chimney cleaning. Gas fireplaces need an annual service check ($100 to $150) plus a chimney inspection. Gel-fuel and electric fireplaces don’t need regular maintenance.
Tax credits for fireplace inserts
Through Dec. 31, 2011, you may qualify for a federal tax credit for up to $300 in costs, if you install a biomass (wood-or pellet-burning) fireplace insert that’s at least 75% fuel-efficient.
Read more: http://www.houselogic.com/home-advice/fireplaces-chimneys/fireplace-addition-costs/#ixzz1dLQ7Xywj
Thursday, November 10 2011
Its the tenth anniversary of the Veteran's Invitational Soccer Tournament and it's currently underway in Evansville. The event, put on by the Evansville Soccer Club brings in more than 4,000 soccer players from 8 different states. Along with the many teams that benefit from the tournament, the city of Evansville and surrounding areas receive a huge economic boost. The annual tournament is the largest youth sporting event in Southwestern Indiana.
The Evansville Convention and Visitors Bureau reports the two weekend tournament brings an estimated 5 million dollars to the local economy. Organizers say that more than 250 teams are competing in this weekends tournament, which brings nearly 10,000 families from across the Midwest. Evansville Soccer Club President, Jim King says this event is a boost for local businesses. The tournament brings 4,000 players and referees from Chicago, Tennessee, Louisville, Ohio and a host of other states. Officials say with this event, the Evansville area scores big! King says the tournament has sold out every hotel within 60 miles of the complex, Teresa Bowman from Tennessee says its best to plan ahead.
Referee Matt Curtis says in addition to the attractions, the facility itself makes people want to come back. The spacious fields, convenient location and estimated 5 million dollar boost for Evansville makes this facility an ideal catch. This weekend is the girl's tournament and the event concludes next weekend as thousands of boys soccer teams take the field.
For more information about the tournament-- visit www.visitevansville.com
Wednesday, November 09 2011
In less than three minutes, a house fire can become uncontrollable. In 1975, house fires tended to not become uncontrollable until an average of 17 minutes, according to a report by the National Institutes of Standards and Technology.
Despite better smoke alarms, home fires are spreading faster nowadays, studies show, so why are blazes spreading quicker?
Certain home furnishings may be one of the biggest culprits of home fires burning faster, some fire experts say. For example, upholstered furniture contains flammable polyurethane foam, which can potentially increase fire hazards. Also, fire experts note in an AOL Real Estate article, homes nowadays are constructed with more open floor plans and building materials, such as wallboard, that can contribute to faster spreading fires too.
Source: “Hot Stat: Today’s Homes Burn Faster Than Ever,” AOL Real Estate News (Nov. 7, 2011)
Wednesday, November 02 2011
Toyota today announced plans to begin exporting U.S.-built Sienna vehicles to distributors in South Korea.
The Sienna is produced at Toyota’s manufacturing plant in Princeton, IN. A top seller in the U.S., Canada and Mexico, this is the first time the vehicle will be exported outside of North America. Shipments are scheduled to begin in early November.
Toyota began exporting U.S.-built vehicles in 1988. These exports increased 30% in calendar year 2010 to about 100,000 units. With the start of these shipments to South Korea, Toyota will now export U.S.-assembled vehicles to 19 countries around the world.
Other export vehicles include the Georgetown, KY-produced Avalon sedan, the Princeton, IN-produced Sequoia SUV and the San Antonio, TX-produced Tacoma and Tundra pick-up trucks. Combined, these three U.S. plants directly employ more than 12,500 team members. They are also responsible for an estimated 65,000 other U.S. jobs at vendors and suppliers.
“Toyota’s North American operations are constantly working to identify and expand new export opportunities for the vehicles we produce here, building on our extensive investments in auto production, research and development in the U.S. and helping to maintain a strong, stable base of jobs,” said Yoshimi Inaba, president and COO of Toyota Motor North America, Inc. “With this development and other possible achievements in the future, we hope to continue boosting exports from our North American operations.”
Sienna exports to South Korea are initially forecasted at approximately 600 units annually.
Tuesday, November 01 2011
Baby boomers who plan to move for retirement are looking for smaller, affordable homes that are easily accessible to medical care and near their family, finds a new poll of more than 1,000 adults born between 1946 and 1964 conducted by Associated Press-LifeGoesStrong.com.
Baby boomers who make more than $100,000 a year are the most likely to say they plan to buy a new home during retirement. For boomers who plan to purchase a new home, the most important factors cited in a home for retirement included:
- Smaller home (40%)
- Near medical offices or hospitals (39%)
- Different climate--perhaps warmer (30%)
- More affordable home (25%)
- Being closer to family (15%)
About 10 percent of baby boomers said they will search for a new city to relocate to that offers more services for them in retirement. Only 8 percent of baby boomers surveyed say they want a larger home for retirement, the poll finds.
However, more baby boomers say they don’t have any plans to move after they retire, mostly due to a drop in their home values as well as a drop in their personal investments and retirement plans the last few years, the poll finds. About 53 percent of baby boomers polled say they plan to delay retirement until they recoup some of their investment losses. In the poll, only 9 percent of the baby boomers expect they’ll be able to live comfortably in retirement.
Source: “Many Boomers in Poll say They Won't Move for Retirement; Those who will Seek Affordability,” The Associated Press (Oct. 26, 2011)