This post sponsored by Windsong Properties
From the flurry of activity and sales at our three communities over the last 3 months, we can tell that something has changed in the mind of the mature buyer. Have they adjusted to the new economy? Are they tired of waiting? Have they succumbed to accepting a depressed price for their current home? We don’ t know for sure, but what we do know is that the market is ripe for those who can pick buy right now.
Through experience, the mature buyer knows the economic environment will be changing soon, and not for the better. Interest rates will rise, material and labor costs are already increasing. Accordingly, the cost of building a low-maintenance, easy-living ranch home is going to rise as
well.
Interest rates have been held to unnaturally low levels for an extended period of time. Not only will a rise in interest rates affect the affordability of a home with a mortgage, it will increase the cost of building that home. Builders often finance the construction of a home, and will thus be required to borrow at a higher rate, passing that cost along to the buyer. Mature buyers who need to sell their home before moving into a more suited ranch will once again struggle to find buyers who can afford the payments with a higher interest rate.
The first half of 2011 saw much of the United States blanked with damage from tornados, floods, and fire. The demand for building materials is growing as communities start to rebuild. The 2011 hurricane season is predicted to bring additional damage as well. Japan is also beginning major reconstruction programs that will create an international market for even the basic building supplies like framing material and plywood. While storm damage keeps economies going, it will put pressure on the supply of building materials. The old “ supply and demand’ rule will come into play, rising prices.
The juncture of price and interest rates is optimal right now. Many mature buyers recognize this and are taking action. Just how long until this precarious balance will be tilted? No one really knows for sure. Those able to take advantage of the situation are doing just that, and enjoying a new lifestyle home and community.












