Once the nest empties many homeowners are staying put for financial and physical reasons. This helps create a situation where buyers find a reduced inventory of homes for sale. Further, it helps to fuel the appreciation in home values while at the same time creating unrealistic expectations for some sellers. The real estate market charges on!
Empty nesters hold on to homes because it makes financial sense. Many have lived in their homes long enough to have paid down the mortgage substantially and have a very affordable monthly payment. Where else can you live for the same amount of money as your monthly mortgage? The cost of living is less than moving to a new home when you consider property taxes, transfer taxes and capital expenses to move (moving costs, closing costs, remodeling when you sell, remodeling after you buy).
As a result the number of homes for sale in Palmetto Bay right now is sufficient to meet the demand for only three months, while in Pinecrest the supply will last six months at the current rate of absorption.
Destinations like upstate Florida, Georgia and the Carolinas have a lower cost of living and bring the promise of a less stressful lifestyle. Food for thought for some and many have done more than think about it. When leaving Miami you give up the numerous activities that are always available, the great variety in restaurants, the year round sunny weather, but, also the higher cost of living, traffic congestion and the reality of stressful living in the city.
It’s also convenient to stay at home from a physical perspective, that is, it’s not cumbersome to take care of the basic maintenance. There are, however, continuous improvements, whether an updated kitchen or a bathroom, or new landscaping. Once it’s not convenient or you’ve had enough trips to the pool store, then that can become a reason to move. Condo, perhaps?
When a life-changing event happens like a grandchild arriving in Central Florida. When you want to stabilize finances by cashing out the equity in the home, or you want to be near the activities that you are now passionate about in another part of town. Whatever the life-changing events are, they motivate empty nesters to put their home on the market. And the buyers are ready to pounce!
The real estate “happy song” that is heard throughout brings out sellers that are speculating for prices above market value. They want that buyer that will pay cash because “they’ll fall in love with my home.” No need for appraisals, no need for inspections, just let lightning strike. And sometimes, it does.
The remaining 99 percent of the times it does not. One of the reasons the cash buyers have cash is that they’re really smart about their money and will not overpay. So too, are the buyers that are financing the purchase.
In the last year twelve homes have sold for more than one million dollars in Palmetto Bay and there is a very tight inventory in Pinecrest for homes priced between $1 million and $1.5 million. The real estate market stops for no one. Jump in when you’re ready.