Senior Retirement Homes -
Now Is The Best Time To Buy

Senior retirement homes are the most affordable they have ever been in recent history. Now is the time to buy!

According to the National Association of Realtors® Housing Affordability Index, U.S. homes are the most affordable they have been in years.

The Housing Affordability Index takes into account three things:

  • Home prices
  • Mortgage rates
  • Income

The Housing Affordability Index is near 200. That means the median family has 200% or twice the income necessary to qualify for a loan on the median priced home.

In May 2011, the median home is priced at $163,200. The mortgage interest rate is a low 4.93% on average. The median family annual income is $61,693.

Retirees should consider buying their senior retirement homes as soon as they can. With quantitative easing (QE2) due to expire June 30, 2011, the Feds will stop buying treasury bonds that has kept interest rates low and gave a boost to the stock market.

How long interest rates will remain artificially low is anyone's guess. I would expect interest rates to rise in coming months.

U.S. homes in general have fallen steeply in price over the past few years. Thanks can be given to our political leader's irresponsible financial policies in handling the economy. The housing market has been in a bear market throughout the United States.

With home seller's being as pessimistic as they can be, this means a new housing bull market is soon to start. People are the most pessimistic at the bottom of every down market. When housing prices rise, senior retirement homes will ride the price wave up too!

Currently, you can still submit low-ball offers. A few months ago, a friend of mine bought a newer home in Arizona for $90,000. His offer was $50,000 below the asking price. The seller took the offer. I would conclude, the seller must have been motivated for whatever reason.

What To Look For In Senior Retirement Homes

When searching for senior retirement homes to buy, I would recommend considering your future needs. Most people want to live in their homes as long as possible. This means you should consider buying a home that will accommodate your senior year needs even if you don't need it now.

Look for homes without stairs. Stairs are hard to maneuver if you are in a wheelchair or use a walker. Homes without entry steps will also aid you in your senior years.

Fortunately if you retire to southern climates like Arizona, Florida, or Texas, many homes do not have a basement. This means you will usually not have a step to get into your house. A big plus for seniors.

I would also avoid homes with sunken living rooms for the same reasons. Steps! I recently removed my sunken living room by raising the floor seven inches. It made the living room warmer by 3 degrees. Cold air will settle in the lowest spot.

Also consider wider doors, at least 36 inches in width. This will make access into every room easier for wheelchair bound seniors and their assistant.

Add in lever handles for faucets and shower controls to make life easier. Speaking about showers, consider buying homes that have shower stalls with very low sides. Low enough for a wheelchair to enter if necesssary.

Senior retirement homes are the most affordable they have ever been in recent history. Now is the time to buy!

With interest rates as low as 4.5%, and housing prices as low as they have been in this latest down cycle, the wise senior or new home buyer should jump at the opportunity to get a good deal while you can!

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