May 7th, 2019
Reports coming from the National Association of Home Builders is showing that the baby boomer housing market is, well, booming. The NAHB found that builder confidence in the 55+ market reached a record high of 76 in Q1. The builder confidence index is made up of 3 components: present sales, expected sales, and prospected buyer traffic. All 3 went up last quarter. This is most likely due to 55+ buyers looking for simpler living spaces to live out their retirements. However, there are challenges that are presenting themselves, mainly with making homes affordable. Construction costs have been on the rise and skilled labor has been harder to find. HousingWire gives some good advice here to loan officers who are looking to capitalize on this demographic market: HECMs for Purchase, which allows home buyers aged 62 or older to buy a primary residence using a reverse mortgage product. Although those loans require sizable down payments and have other nuances, it' could be a great option for those homeowners looking for their retirement spot.
Do you have builder contacts? If not, you should look at expanding your builder referral partnerships because the opportunities are very much there.