Posts from — April 2009

Jim Gillespie, CEO of Coldwell Banker Real Estate appeared on Fox Business News this morning. 

The main topic of the appearance was the existing homes sales report that is developed by the National Association of Realtors, including discussion about the economy and the current conditions of the housing market

Real Estate is a complicated investment, and current market data is crucial to making informed investment decisions.

View the 1st Quarter Outer Banks Market Report

The national housing market is beginning to show some positive signs. 

The National Association of Home Builders/ Wells Fargo housing market index climbed five points over the past few weeks.  This is still considered to be a record breaking low, but it is the highest this index has been since October. 

“This is a very encouraging sign that we are at or near the bottom of the current housing depression,” says David Crowe, chief economist for the Washington-based trade association.  This index hit an all time low in January with increasing layoffs and the worsening of the current US economic state.

Builders and Real Estate Brokers are beginning to see increases over the last few weeks.  “Some of the most favorable buying conditions in a lifetime are now in place, and they are drawing more consumers back to the market,” said NAHB Chairman Joe Robson, a homebuilder from Tulsa, OK. 

Tax credit incentives from the Obama Administration are also drawing a number of first time homebuyers to the market. 

RETIREMENT COMMUNITIES MAY BENEFIT FROM SILVER LINING IN ECONOMIC DOWNTURN

53 Percent of Surveyed Coldwell Banker^® Real Estate Professionals in Retirement Havens Report Increase in Retirees Ages 60 and Younger Purchasing Homes

PARSIPPANY, N.J. (April 14, 2009) – According to a recent national survey of Coldwell Banker^®  real estate professionals, over half of those who work in popular retirement areas are seeing younger retirees (ages 60 and under) looking to purchase homes in their markets.

Furthermore, 43 percent of all the sales associates and brokers surveyed believe market and economic conditions may cause an increase in demand for retiree homes in their areas throughout the next year.

“Over the past couple of years, home prices have declined significantly in the majority of markets with traditional appeal to retirees,” said Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate LLC. “Younger retirees are taking advantage of these desirable prices and turning the economic downturn into an opportunity.”

While the survey indicates that this is emerging trend across the country, driving factors seem to vary regionally.  For example, anecdotal feedback from Coldwell Banker real estate professionals in South Florida finds pre-retirees taking real estate-related steps now to support longer-term goals.  “Many individuals not yet ready to retire are purchasing these homes and leasing them until they are prepared to move permanently,” said Elaine Harari of Coldwell Banker Residential Real Estate in Bay Harbor Islands, Fla.

In desirable areas with low property taxes, such as northeast Arkansas, it’s more common for younger retirees to move from more expensive cities; some even taking jobs for which they can telecommute to save money.  Additionally, Coldwell Banker professionals in Michigan note that some retirement communities are experiencing an influx of former automobile company employees who have received early retirement packages. 

Andrew Briele, president of Coldwell Banker First Affiliate in Sedona, Ariz. reports a recent increase in sales volume.  “Lifestyle is certainly the reason why so many choose to move to Sedona.  We have 360 days of sunshine.  With the 30 percent price corrections we have experienced, many individuals who are at or near retirement are realizing this is a great opportunity for them.  Some buyers who have lost their jobs, taken retirement packages or sold their businesses are moving up their plans for retirement and taking advantage of the low mortgage rates and home prices.  Others, who are already here, are moving up.”

The Coldwell Banker real estate professionals surveyed offered their perspectives on the top reasons retirees are buying or selling homes, and 33 percent said the No. 1 reason retirees are moving right now is to live closer to their families. Interestingly, 12 percent cited improvements in housing conditions, such as buyer-friendly home prices and interest rates, as the key drivers.

Other results from the overall survey include:

·         53 percent of Coldwell Banker real estate professionals have observed an increase in retirees who plan to downsize from their primary residences into smaller properties.

·         37 percent are seeing an increased number of retirees who own more than one property sell their primary residences to move to their secondary homes.

·         23 percent are seeing more people buy different homes for retirement, or move into their previously purchased retirement properties earlier than expected.

Methodology: Coldwell Banker conducted an online survey on trends regarding retirement-aged home buyers in March 2009.  The survey yielded responses from 1,475 Coldwell Banker real estate professionals across the United States, including 423 agents and brokers in communities typically described as “havens for retirees.”

About Coldwell Banker^®

Since 1906, the Coldwell Banker^® organization has been a premier full-service real estate provider. In 2008, Franchise Times magazine’s prestigious Top 200 issue ranked the Coldwell Banker system No. 1 in real estate for the ninth straight year and 12th among franchisors in all industries. The Coldwell Banker System has approximately 3,500 residential real estate offices and 105,300 sales associates in 46 countries and territories. The Coldwell Banker System is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury property through its Coldwell Banker Previews International^® division. It is a pioneer in consumer services with its Coldwell Banker Concierge^® Service Program and award-winning Web site, www.coldwellbanker.com. Coldwell Banker Real Estate LLC is a subsidiary of Realogy Corporation, a global provider of real estate and relocation services. Coldwell Banker^® is a registered trademark licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.

There are some signs that the U.S. may be pulling out of the nationwide housing downturn. 

There are some indications that home sales will begin to rise again, but it is just a matter of time.  “National real estate brokerage Coldwell Banker Real Estate is seeing buyers push life plans up as a result of the economy, and seeking deals on their retirement homes.  First-time buyers are coming back into the market,” says Jim Gillespie, president and CEO of Coldwell Banker Real Estate. 

These changes are brought about with the help of federal incentives, which include an $8000 tax credit for first-time, residential buyers.  The fact of the matter is that if you are planning on buying a home, now may be the time to act.  Interest rates are at all time lows, inventory levels remain relatively high, meaning that the buyers will be presented with great selection, and discounted pricing.