Column: Downsizing to allow children to own home

Philip A Raices

Multigenerational homes are coming back in a big way!

I the 1950’s, about 21 percent, or 32.2 million Americans shared a roof with their grown children or parents. According to an article: By Realtor.com, “Nearly 1 in 5 Americans is now living in a multigenerational household; a household with two or more adult generations, or grandparents living with grandchildren, a level that hasn’t been seen in the U.S. since 1950.”
Another report that proves this point is the National Association of Realtors’ (NAR) 2017 of Home Buyers and Sellers: (https://www.nar.realtor/research/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers which states that 13 percent of home buyers purchased multigenerational homes last year.

The top 3 reasons for purchasing this type of home were:
1.) To take care of aging parents (22 percent, up from 19 percent in 2016)
2.) Cost savings (approx. 17 percent)
3.) Children over the age of 18 moving back home (16 percent, up for 14 percent last year
Valerie Sheets, spokesperson for Lennar Homes, a prominent National Developer, points out that, and I quote, “Everyone is looking for the perfect home for any number of family situations, such as families who opt to take care of aging parents or grandparents at home, or millennials looking to live with their parents while they attend school or save for a down payment.”
For a long time, nuclear families (a couple and their dependent children) became the accepted norm, but John Graham, co-author of “Together Again: A Creative Guide to Successful Multigenerational Living,” says, “We’re getting back to the way human beings have always lived in-extended families.”
This shift can be attributed to several social changes over the decades. Growing racial and ethnic diversity in the U.S. population helps explain some of the rise in multigenerational living: “Data suggest that multigenerational living is more prevalent among Asian (28 percent), Hispanic (25 percent) and African Americans (25 percent), families, while U.S whites have fewer multigenerational homes (15 percent).”
Valerie Sheets brings to light the fact that home prices have been skyrocketing in recent years. She says that, “As home prices increase, more families tend to opt for living together.”
Multigenerational households are making a comeback. While it is a shift from the more common and traditional nuclear home, these households might be the answer that many families are looking for as home prices continue to rise in response to a lack of housing inventory. If these explanations don’t fit your particular situation or lifestyle; then here are seven reasons to list your home now and not wait:
1.) Relocation buyers are out there. Many companies are still hiring throughout the holidays and need their employees in their new positions as soon as possible.
2.) Purchasers who are looking for homes during the holidays are serious buyers and are ready to buy now.
3.) You can restrict the showings on your home to the times you want it shown. You will remain in control.
4.) Homes show better when decorated for the holidays.
5.) There is less competition for you as a seller right now. Inventory is 6.4% lower than last year and keeps getting lower due to a 35 year high in demand and still a 60 year low in interest rates, plus all the cash buyers and investors that are still out there!
6.) The desire to own a home doesn’t stop when the holidays come. Buyers who were unable to find their dream home during the busy spring and summer months are still searching!
7.) The supply of listings increase more after the holidays. Also, in many parts of the country, new construction will continue to surge reaching new heights in 2018, which will potentially lessen the demand for your home. However, this will depend on your local market and the available buildable land or knock down houses to build new ones upon.

The bottom line is that waiting until after the holidays to sell your home probably doesn’t make sense. Maybe now is a great time to start decluttering!!!

Phil Raices is the owner/Broker of Turn Key Real Estate at 7 Bond St. in Great Neck. He has earned the designations as a Graduate of the Realtor Institute and is a Certified International Property Specialist. He can be reached by email: Phil@TurnKeyRealEstate.Com or by cell (516) 647-4289 to answer any of your questions or article suggestions or provide you a free Comparative Market Analysis on your property.

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