David AmmonsDavid Ammons is president of Retirement Living Associates, Inc. (RLA), a company which provides planning, development, marketing, and management services for new and existing retirement communities. He has worked in and with Senior Living Communities since his graduation from Wake Forest University in 1985.
Analyzing today’s real estate market is like shooting at a moving target. Even the most highly experienced real estate agents don’t agree or really know when is the best time to buy and sell, but I want to share some thoughts on timing. That decision is also very personal and often comes down to factors other than simply price.
Nationally, home sale prices are recovering or stabilizing and are at approximately the same level as 2001 or 2002. The Triangle Area Real Estate trends continue to be very good and overall we are fortunate to live in this market. Following are a few key numbers at the end of the third quarter of 2012 that show positive change:
Third quarter 2012 highlights:
- Listings decreased 23 percent to 5,397.
- New Home and Re-Sale Inventory decreased 23 percent and 22 percent respectively.
- Expired Listings decreased 42 percent; Withdrawn Listings decreased 28 percent.
- Average Days on Market decreased from 144 days to 119 days.
When is the right time to Sell?
Many seniors, whether moving into a smaller home or a retirement community, have remained in their homes and postponed moving during the recession. With the recession largely behind us, the ability to fund a new home often depends on selling an existing one. There are several factors benefiting us in the Triangle:
- The Triangle economy with strong Health Care, Technology and Government jobs will continue to keep real estate improvement ahead of many areas.
- Home values will begin and continue to rise in the Triangle.
A senior, thinking about selling, needs to keep a few key factors in mind. The recession slowed new home starts; with an improving real estate market, many new home builders will get back into the market. New homes generally provide benefits in energy efficiency, updated technology, lower maintenance costs and more modern design which make re-sales more challenging. Certainly specific neighborhoods and locations can overcome these benefits, but in general, re-sales struggle when compared to new home sales.
Another strong driver is the record low interest rates available today for home purchases. With rates low, new home builders will rush back as soon as it seems practical and reliable financing is available.
A uniquely positive time to sell
Overall, my conclusion is that our improving real estate market makes the next 12 months a uniquely positive time to sell an existing home. Waiting longer for the market to improve further may miss this opportunity.
A final aspect of an improving residential real estate market is that a demand for senior- friendly communities, whether active adult style or a more traditional retirement community, will increase as more seniors decide now is a good time to sell their home and make a move. This increase in demand will make the availability of senior housing tighter and related options less attractive. Communities may return to their more than 98 percent occupancy status. This will result in seniors not being able to simply choose their preferred community and their top new home floorplan or location within the community.
The conclusion I draw is that Now is a Good Time to move when you find a new home or a community that you like which provides what you are looking for.
On a final personal note, I am sure we all agree that the economics and timing are important. However, after assisting thousands of seniors to relocate, most say getting settled with the added freedom of having amenities and services taken care of and lifestyle and security protected against future health changes is their number one priority.