Miami Real Estate Learning Center

BOOMERS ARE STAYING IN THEIR EXPANSIVE HOUSES

Baby boomers, having once dominated the housing market with their acquisition of large homes, are now defying expectations by staying put rather than downsizing. Despite their children having flown the nest, many boomers are choosing to remain in their spacious residences, contributing to the scarcity of available housing inventory. I've personally experienced the opposite this year with boomers wanting to get a bigger condo to host their kids and grandkids and of course to enjoy life.

This trend of not wanting to downsize is driven by various factors, including the surge in housing prices, limited inventory, and higher interest rates, which collectively make it less financially viable for boomers to downsize. Additionally, many older homeowners have already paid off their mortgages and are content with their current living arrangements. Some express a desire to downsize but are deterred by the high costs associated with smaller properties or retirement communities. Moreover, a significant portion of boomers plan on prolonging their working lives or embracing an active retirement, further delaying any relocation plans.

Statistics reveal that a substantial portion of large homes, comprising three or more bedrooms, are owned by individuals aged 60 to 78, while millennials with children occupy a smaller share of such properties. Despite expectations of a mass exodus from these homes, fueled by predictions of boomers selling off their properties, many remain firmly entrenched in their residences.



RECORD BREAKING SALE OF LUXURY HOUSES IN MIAMI

Luxury homes are commanding higher prices than ever before, with the typical luxury home selling for a record $1,225,000 in the first quarter of this year, marking an 8.7% increase in price from the previous year. Overall real estate sales fell 4% nationwide in the first quarter. Yet, luxury real estate sales increased more than 2%, posting their best year-over-year gains in three years. The top three most expensive home sales in the country occurred in Miami, Seattle, and Los Angeles, with prices ranging from $38.5 million to $48 million. Let's be clear I didn't sell that one....

Despite high mortgage rates, demand for luxury homes remains robust, with nearly half of luxury home purchases made in cash, the highest proportion in at least a decade. This confidence in the luxury housing market is reflected in the 2.1% increase in luxury home sales compared to a year earlier, while sales of non-luxury homes declined by 4.2% over the same period.

I feel that buyers and sellers alike are feeling optimistic about the luxury housing market, expecting prices to continue rising.



HOUSE + CAR + WEDDING OR THE OTHER WAY AROUND?

Thinking about buying a house? Well, buckle up because there's a lot to consider, especially if you're a young buyer. Let's break it down:

First off, that shiny new car you've been eyeing? As tempting as it may be, think twice before splurging. Car payments can impact your chances of getting a mortgage, so prioritizing homeownership over fancy wheels might be the way to go. Remember, it's all about putting the house first!

Now, what about tying the knot? Well, turns out there's no one-size-fits-all answer. Some folks are holding off on saying "I do" until they've got a place to call their own, while others are swiping right after securing a mortgage. It's all about what works best for you and your partner.

And let's talk mortgage rates. Waiting for them to drop might seem like a smart move, but here's the scoop: rates can be as unpredictable as the weather. Plus, while you wait, house prices could be on the rise, leaving you in a pickle. But hey, if you're not thrilled with your rate down the line, you can always consider refinancing. Just be prepared for some extra costs along the way.

At the end of the day, the decision to buy a house is a personal one and not mine. Whether you're dreaming of homeownership or itching to hit the open road in a new car, it's all about finding the balance that works for you. So, take your time, weigh your options, and don't forget to enjoy the ride!