Only time will tell if the housing market improves significantly in 2023. However, a recent study predicts how retirees and first-time homebuyers might adapt to the changes and challenges ahead.
Together, retirees (aged 66 to 74) and first-time homebuyers accounted for 48% of the homes sold in 2021. But inflated pricing, followed by a quick climb in interest rates, sent newbies and retirees heading for the sidelines.
Flash forward to now. A recent study shows top real estate agents expect these segments to reappear during the first six months of 2023 — each with new ways of adapting to the market.
Retirees
59% will delay plans to sell or remain in their current homes.
55% will look to sell while downsizing.
42% will change where they plan to retire due to higher costs.
39% will adapt their homes to age in place.
22% will adapt their homes to invite children or grandchildren to live with them (to lower housing costs for all).
First-Time Homebuyers
67% will explore more affordable areas.
54% will increasingly use rate buy-downs to secure a lower interest rate.
45% will look for smaller or older homes.
At the end of the day, agents agree that managing their expectations is key in helping retirees and first-time homebuyers adapt to today’s evolving market.
