National home prices rose by 7 percent in 2015 over 2014 according to Redfin, a national real estate brokerage, or by 4.6 percent according to the S&P/Case-Shiller U.S. National Home Price Index. Meanwhile, the growth of home values is accelerating again, according to the Zillow Home Value Index. By any metric, home prices are growing faster than the costs of senior living, which grew by 2.7 percent in 2015 according to our Senior Living Cost Index.
All these numbers point to a hyper-competitive real estate market with historically low inventory but steady demand. That means it’s a good time for seniors to sell a home and move to senior living, reports McKnight’s Senior Living.
But for how long?
Redfin and Zillow are reporting some possible signs of a market shift driven by buyers at the low- to mid-end getting priced out of the market. But are those signs strong enough to overwhelm the evidence that a booming sellers’ market will continue?
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It’s a booming sellers’ market…
…but for how long?
Two things are certain. First, the housing market has recovered in a way that prices a lot of homebuyers out of the market. Second, the few homes that are on the market sell like hot cakes and at high prices. Put those two things together and it looks good for seniors with a home to sell. But what’s uncertain is how long that sellers’ market will last. Seniors and their families should follow the real estate market closely to make sure they can take advantage of favorable market conditions in a way that suits their needs, priorities and timelines.