{"id":18716,"date":"2022-06-08T08:44:24","date_gmt":"2022-06-08T15:44:24","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=18716"},"modified":"2022-06-08T08:44:24","modified_gmt":"2022-06-08T15:44:24","slug":"why-wont-people-move","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18716\/why-wont-people-move\/","title":{"rendered":"Why won’t people move?"},"content":{"rendered":"

The housing market is “stuck”. Higher mortgage rates and the fear of higher property taxes cause Boomers and Millennials to “hunker down” rather than move to new homes. Reverse mortgages might offer a solution to this problem<\/strong>. Today,\u00a0 2 out of 3 Baby Boomers are rejecting retirement communities<\/a> and “aging in place”:<\/p>\n

Today, 66% of this population report that they plan to age in place. Little changed from 2016, when 63% said the same. Given their reported financial gains in the past five years, however, they may be more equipped to do so.<\/em><\/p>\n

When asked when they expect to move next, 27% feel confident they would move again, while 36% believe they will not move and 37% simply don\u2019t know. These data suggest this population is in no rush to leave their current homes.<\/em><\/p>\n

Regardless of their plans to move or age in place, 66% of survey respondents say they expect their home to need some degree of renovations to make the space livable for the long term if they were to age in place. Between personal savings and longer-term retirement and investment accounts, those who think they would need renovations to age in place say they are confident they could afford them.<\/em><\/p>\n

This is both a problem and opportunity for real estate agents and brokers.<\/strong>\u00a0 Boomers own many of the “move-up” homes their children covet but can’t afford.<\/a>\u00a0 Millennials might love to sell their $500,000 homes, and trade up to a $700,000 home but are locked in to sub 3% mortgage rates in a 5.5% mortgage rate environment.\u00a0 \u00a0 Let me break down the sticker shock the millennials are facing:<\/p>\n

Millennial family buys a home for $350K, in 2016, with a 4.75% FHA mortgage rate and a monthly PITI of $2400.\u00a0 In 2021, they refinanced that mortgage to a 2.75% conventional loan with a monthly PITI of $1700, retaining over $200K in equity (which could be used for a down payment on a $700,000 home.\u00a0 There are two problems today:\u00a0 that $700,000 home is now $800,000 and mortgage rates are at 5.5%.\u00a0 If they sold their smaller homes, used their home equity as a down Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The housing market is “stuck”. Higher mortgage rates and the fear of higher property taxes cause Boomers and Millennials to “hunker down” rather than move to new homes. Reverse mortgages might offer a solution to this problem. Today,\u00a0 2 out of 3 Baby Boomers are rejecting retirement communities and “aging in place”: Today, 66% of […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,5],"tags":[585],"class_list":{"0":"post-18716","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-real-estate","8":"tag-reverse-mortgage","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":9405,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9405\/reversing-a-trend-or-back-to-the-future\/","url_meta":{"origin":18716,"position":0},"title":"Reversing a Trend Or Back To The Future?","author":"Brian Brady","date":"August 1, 2009","format":false,"excerpt":"If you're considering a reverse mortgage, get it now. The reverse mortgage market is going to blow up as big as the sub-prime market did.\u00a0 This time, like last, it's those \"durned borrowers\" acting differently than the rockets scientists predicted they would.\u00a0 In the sub-prime market, it was assumed that\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":50,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/50\/surfing-a-twenty-year-wave-in-the-desert\/","url_meta":{"origin":18716,"position":1},"title":"Surfing a twenty-year wave in the desert","author":"Odysseus","date":"January 28, 2006","format":false,"excerpt":"From the Las Vegas Review-Journal:For the next 20 years, some of the weightiest issues for home builders will be figuring out where baby boomers really want to move, when and if they sell their homes, and what type of housing will they desire, be it city-center high-rise condo, beach house,\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3503,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3503\/the-youth-myth-why-its-hip-to-be-square-in-real-estate-brokerage\/","url_meta":{"origin":18716,"position":2},"title":"The Youth Myth: Why It’s Hip To Be Square in Real Estate Brokerage","author":"Brian Brady","date":"July 26, 2008","format":false,"excerpt":"You're just back from Inman Connect?\u00a0 Forget everything you heard there.\u00a0 Chasing the hip, young 18-34 market is great if you're selling sneakers but could be detrimental to the health of YOUR business for the next 7 years.\u00a0 Here's why: Five reasons why you should avoid the 18-34 year old\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1788,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1788\/thomas-sowell-housing-woes-caused-by-land-use-restrictions-and-federal-micro-management-of-lenders\/","url_meta":{"origin":18716,"position":3},"title":"Thomas Sowell: Housing woes caused by land-use restrictions and federal micro-management of lenders","author":"Greg Swann","date":"August 11, 2007","format":false,"excerpt":"Hoover Institute Economist Thomas Sowell:Amid all the hand-wringing and finger-pointing as housing markets collapse, mortgage foreclosures skyrocket, and financial markets panic, there is very little attention being paid to the fundamental economic and political decisions that led to this mess. The growth in risky \"sub-prime\" mortgage loans by people buying\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2052,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2052\/baby-boomers-and-social-security-let-the-games-begin\/","url_meta":{"origin":18716,"position":4},"title":"Baby Boomers and Social Security — Let the Games Begin","author":"Jeff Brown","date":"October 15, 2007","format":false,"excerpt":"A watershed event happened a few hours ago. It will, hopefully jolt millions of Boomers into ending their journey down the River of Denial. Let the Games Begin.","rel":"","context":"In "Retirement"","block_context":{"text":"Retirement","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/retirement\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3633,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3633\/generation-jones-angst-filled-baby-boomers-are-a-great-market-for-realtors\/","url_meta":{"origin":18716,"position":5},"title":"Generation Jones: Angst Filled Baby Boomers Are A Great Market For Realtors","author":"Brian Brady","date":"July 31, 2008","format":false,"excerpt":"I started the discussion about \"generational\" marketing with the controversial article: The Youth Myth: Why It\u2019s Hip To Be Square in Real Estate Brokerage In that article, I discussed why the Baby Boomers represented an under-served market for high-tech real estate agents and lenders.\u00a0 Fascinated by the responses, I started\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/18716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=18716"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/18716\/revisions"}],"predecessor-version":[{"id":18717,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/18716\/revisions\/18717"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=18716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=18716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=18716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}