50+ Housing e-Source - 08/26/2008 (Plain Text Version)Joanne Theunissen
View Graphical Version
|
Subscribe to NAHB Publications
|
E-mail Our Editor In this issue: 50+ Home Buyers in Prime Spot to Lead Housing RecoveryPost-World War II baby boomers are in the prime position to lead housing out of its current cyclical downturn, according to panelists participating in an Aug. 12 audio seminar from the NAHB University of Housing “Get Hesitant Boomers to Buy Now!”
The recent enactment of housing stimulus legislation should convince a significant number of baby boomers that now is the prime time to get off the fence, they added.
“This group is determined to move on with the next phase of their life,” said Chuck Covell, president of Covell Communities in Gaithersburg, Md. “As a result, this segment of buyers is out there looking to make that change and is willing to overlook market obstacles in the way and some of the downtrodden feeling that may be out there,” he said.
“The general feeling is that we just don’t have time to wait until the next cycle comes back,” said Covell.
Seventy-nine percent of the 50+ population own a home, the highest homeownership rate of any other age group in the U.S., and of those, 67% are mortgage-free, said Rich Carlson, president of Carlson Communications in Northborough, Mass.
“Small, medium or large — even in today’s soft market, active adult builders are selling homes,” said Carlson. But builders “have to do the homework” to ensure that what they are offering is what these buyers are looking for.
Deborah Blake, vice president of sales and marketing for the Southwest Area of Pulte Homes Corporation in Scottsdale, Ariz., said that the 50+ market is “the best and the brightest opportunity” in today’s market because it potentially represents millions of qualified buyers with a solid financial profile.
Elevating Consumer Confidence
Running up through the November elections, “we’re going to see tough times for small to mid-sized builders, who will continue to sell homes at market price,” whatever that is, Blake predicted. But by next spring, there will be “a new outlook, a fresh outlook, consumers should be more confident, and we should take advantage of that.”
“Most important, is the emotional impact that there is something new in the marketplace that wasn’t there before and an elevation in consumer confidence that things will be fine,” said Carlson of the stimulus bill.
An ‘Amazing’ Buyer’s Market
Buyers today can take advantage of “potentially the lowest prices that they will see for a very long time,” said Blake, with the replacement costs of the homes now in the marketplace sure to rise in the relatively near future.
“Solve other issues so they can take advantage of this opportunity,” she said. “This is an amazing buyer’s market. We’re not just talking about a home in the neighborhood, but quality of life that your customer can put a value on. You don’t want to miss another day of living here.”
Controlling the Existing Home Sales Process
To help move buyers for whom selling the existing home is a concern, Carlson uses a selling solutions program geared to using expert sales associates and Realtors to help them get the maximum price for their project.
“Builders want to retain control of the process of selling the existing home, make sure the house is priced properly” and have the sales team work with specialists to ensure that everything is being done to sell the home, he said. If the home doesn’t sell within a 60- or 90-day period, the 50+ buyer can receive their deposit back from the builder.
By emphasizing the emotional side of the transaction, she said, the 50+ buyer can be brought to the conclusion that “I really want that, and I don’t like where I am today.”
For more information about the seminar or NAHB resources related to the 50+ market, e-mail Jeff Jenkins at NAHB, or call him at 800-368-5242 8557. For more information or to contact us directly, please visit www.NAHB.org | ©2008, National Association of Home Builders |