Active Adult Housing Market - 55 and Over - Going Strong During Slowdown
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Homesellers that are targeting the active adult market, those adults that have just entered their senior years but are still going strong, are still doing well according to the the National Association of Home Builders. These markets are a little different to sell into as the buyers typically are not in a great rush like a family relocating or needing a bigger house due to a new child.
But when they come to buy money is much less of an issue. They are more willing to buy or build before selling their previous home. And cash at closing typically is not an issue. With more than 25 percent of the population of the United States over 55 this may be a market to explore in your community.
Yet the active-adult segment is not suffering as much as the new-home market as a whole, says Gopal Ahluwalia, vice president of research at the National Association of Home Builders. “The current factors, especially high prices, have been affecting the first-time buyers more than anyone else, and it has gotten more difficult for them to buy because the problems with subprime loans have made lenders tighten credit standards,” Ahluwalia said.
The over-55 market is not feeling the same pressures because so-called active adults are not in a “supply market” - that is, in most cases, they are not in a hurry to buy a house. “When these buyers get into the market, they come in with higher income, deeper equity and already are living in a house that has gone up in value over the years,” he said. via San Jose Mercury News

