If you bought your first home in the 70's or 80's you may remember the days of rates from 12% - 18%! Prices were a bit different with home prices in Arizona averaging around $108,000. Income was also around $21,000 per year in Arizona in 1984 (about 19% of average home value). Far cry from the current median house price in Arizona (as of 10/2023) of $439,945. The current monthly median income is around $69,056 (about 16% of average home value). This has created a unique situation for our Baby Boomers! The increased equity in your home along with retirement (that was offered by many employers and discontinued for our next generations) and social security have made the housing market ideal for our Boomer generation.
For our active adult Boomers there are many options to choose from in your next community. Several options include everything from clubs, concerts, pools, pickleball, tennis, golf, and so much more! Communities spread throughout the region have many options and price points. You can build new and buy resale. Having the cash equity will help leverage your buying power even if you are looking at a small mortgage. Lenders have options to buy down rates and in many cases the builder or seller may contribute to this cost with proper negotiations.
In some cases, adult children and possibly their families may have a hardship in obtaining their home. This is another great situation for Boomers in building or buying a resale home with a suite. These homes and the suites can be very lavish and in some cases two homes in one! Homes with suites may feature; separate entry, living area, bedroom, separate full bathroom, separate laundry, and own side yard and garage! This option can also share income between families and make estate planning much easier. Here are a couple of example suites from Lennar and D.R. Horton, however, there are various options and even custom suites available!
Whatever option you choose, as an accredited SRES® (Senior Real Estate Specialist) we are here to help explain options to assist you in your decision-making process. Reach out to us today for more information.