Sarasota, Florida (PRWEB) March 19, 2013
The growing confidence of potential buyers in the 55-year-old-plus housing market and the prevailing low mortgage rates are providing the impetus for new residential development projects for seniors, Sarasota Bay Real Estate said. This forward momentum, the full service realty firm noted, is coming largely from senior home buyers drawn from the sidelines by the stabilizing conditions in their respective local markets.
The signs of stability, Sarasota Bay Real Estate added, can be drawn from the January 2012 improving markets index of the National Association of Home Builders (NAHB). It showed that there were 242 healing markets across the U.S. for the month, compared with just 12 when the NAHB began computing the index in September 2011.
The focus of improving sentiments
The developers’ optimism, on the other hand, can be gleaned from the significant improvements in the components of the NAHB indexes on builder confidence on single family and multifamily condo homes for the 55-plus home market. For the 2012 fourth quarter, the component gains in the 55-plus home market index (HMI) included those in sales (10 points to 27), expected sales in the next six months (12 points to 38), and traffic of prospective buyers (9 points to 24). Overall, the single family HMI rose 10 points to 28, the fifth quarterly gain in a row on a year-over-year basis.
The improvement though was weaker in the 55-plus multifamily condo HMI which edged up by six points to 19. Nevertheless, all the components of this particular index also rose from the 2011 fourth quarter, with present sales up five points to 17, expected sales for the next six months up eight points to 25, and traffic of prospective buyers up six points to 21.
Revealing data from builders’ show
Reports from the International Builders Show sponsored by the NAHB in Las Vegas this past January also paints a rosy picture on new property developments specifically geared for the estimated 70 million baby boomers, born between 1946 and 1964, now headed toward or are already in their retirement years. Statistics released at the Las Vegas builders’ extravaganza indicate that the number of senior housing units will jump by 22 percent this year.
It is significant to note, Sarasota Bay Real Estate said, that these baby boomers one way or another have to engage the market sooner than later, as age is catching up with them. Their growing influx into the market isn’t likely to cause a price spiral or a market bubble, however. While interest rates are very attractive, which are forecast to stay below the 4 percent level this year and next, the banks’ home loan regulations are very strict, the realty firm noted.
New development tack
To help push their projects, developers, on the other hand, are adapting to the more laid-back lifestyle of the current crop of seniors engaging the home market. Instead of developing new golf communities, which was the vogue prior to the Great Recession, homebuilders are now keener on incorporating into their projects such simple amenities as walking and jogging trails, parks areas, and street sidewalks.
Nonetheless, Sarasota Bay Real Estate said that this doesn’t mean that there’s a waning interest on existing golf communities. For instance, activity in the Lakewood Ranch’s Rosedale Golf and Country Club, it noted, has been picking up on sales and listings of existing homes. In addition to Rosedale Construction, which developed this golf community, other homebuilders—Ashton Woods and M/I Homes are set to start a new phase in Rosedale consisting of 445 homes.
About Sarasota Bay Real Estate
Sarasota Bay Real Estate is a full service real estate brokerage in Sarasota Florida owned by Sarasota real estate broker, Christina Miller, and marketing professional, Roy Hunter. Together they, and their team of well-experienced agents, provide the best-in-class real estate marketing services for the properties in the company’s inventory.
Sarasota Bay Real Estate Internet assets receive more than 1,000 visits from perspective home buyers a day due to the wealth of local community information published by the company. Through a direct feed from the Sarasota MLS, Sarasota Bay Real Estate publishes the most current real estate information on the Internet for the Sarasota, Florida, market.
Contact information for Sarasota Bay Real Estate and all of the current MLS listings of real estate for sale in the Sarasota-manatee area can be found at http://sarasotabayrealestate.com/