With housing prices on the rise, some seniors are wondering if now is the right time to sell their home and make the transition into retirement-community living.
Here are 3 reasons now might be the ideal time.
1. Increased Equity in Property Values
There are currently bidding wars around the country due to record-breaking demands for homes for sale, but a short supply of available homes on the market.
In April 2021, the national median price for an existing-home (for all housing types) has increased nearly 20% from April 2020, according to tradingeconomics.com
According to ABC 7, “home prices have risen to their highest rate in 15 years — 11. 2 percent. And demand is so intense that Redfin reports nearly half of homes are selling within a week of hitting the market.”
This quick sale of homes means that sellers are receiving multiple bids, allowing them to choose the offer that works best for them.
For seniors thinking of making the leap from homeowner to retirement-community member, now might be a great time to sell and make the change.
Seniors who sell and choose to move into a retirement community will find themselves with the opportunity to zero out debt and can use the additional funds to pay for the monthly cost of the retirement community.
This choice allows seniors to reduce debt, stop paying property taxes, escape costly home repairs, and move to a retirement community that offers them safety, community, and round-the-clock care.
Why the increase in housing sales prices?
Many people looking to buy and sell in March 2020 (or in 2020 in general) were unable to do so due to the Covid-19 pandemic: showing a home and holding open houses just wasn’t realistic or safe at the time.
With an increase in vaccinated community members, an increasing number of homeowners feel comfortable opening their home for showing – and more potential buyers feel safe attending.
In addition, more people are working from home than ever and many expect to continue working from home long after the pandemic has ended.
This change in work environment and habits has led to new needs, like increased bedrooms or more spaced out or insulated floor plans, leading many current homeowners to be back on the market.
There is also a global shortage in building supplies, which has affected the ability to build new homes and to keep up with the demands of the housing market, resulting in a limited supply of available homes for sale.
2. Escape Maintenance Repairs and Exit Property Taxes
While owning a home can be a wise investment and offer a tremendous sense of independence and pride, it doesn’t come without it’s costs and downsides.
Most homeowners start out with a 30 year mortgage and most are still making payments. Selling your home can be an opportunity to eliminate what is likely your largest debt.
Even if your home is already paid off, selling your home would allow you to stop paying property taxes, saving an average of $5,300 per year (calculated at .73% of the average home price in California, $729,000).
Beyond property taxes, you’re also saving on costly repairs and regular maintenance, which you’ll no longer need to pay when you move into a retirement community, like Meadowbrook.
Many homeowners pay for routine maintenance, like landscaping, housekeeping, or pool keeping, or vent cleanings, but they’ll also need to be budgeting for those higher-priced repairs, like plumbing leaks or breaks, roof replacements, repainting, repairing or replacing fences, replacing water heaters, and more.
According to a 2018 article about home maintenance costs, “Californians spend an average of $16,957 per year on home maintenance, the seventh most in the country and the highest of any Western state.” Of course, the repairs and costs will vary with each home, but generally, the older the home, the more frequent and more costly those maintenance expenses will be.
Seniors may want to sell their home now, and use the equity they’ve gained and the savings they keep in property taxes and maintenance and repairs to join a retirement community, like Meadowbrook Village, where things like water, sewer, trash, exterior maintenance, 24-hour emergency care, security, and more are all included for a small monthly fee.
3. Build a Community that Can Grow with You
If there’s one thing the Covid-19 Pandemic has made clear to us all, it’s the importance of community. A strong community can support its members in times of need and can help to keep each other safe – even (and maybe especially) in a global pandemic.
When choosing to move to a retirement community like Meadowbrook Village, one of the most valuable assets you’ll be acquiring is a community of others who are in the same stage of life.
While many were isolated during the pandemic shutdown when citizens were asked to limit and shrink social circles, residents at Meadowbrook were able to maintain a community, since they’re part of a shared circle.
As vaccination rates are increasing, Meadowbrook is able to return to hosting community events, loved by its residents, including game nights, community dining, and regular outings and excursions.
In addition, choosing Meadowbrook means having a home environment that will support you throughout changes in health, from independent living to assisted living to skilled nursing and memory care.