From Homescape

From luxury home developments to active adult communities, new home builders across the country are struggling to get warm bodies into their vacant abodes. During the housing boom, in once thriving markets like California and Florida, people used to camp out on sidewalks along newly developed residential communities just to get first dibs on a freshly built home. But in today’s market, the tide has turned, and it looks like the builders are the ones now standing on the sidewalk trying to lure in buyers.

For many Baby Boomers, even as the housing market turned sour, the plans to relocate were already in the works. But in a struggling market, these prospective new buyers are having a tough time selling their current homes. To move inventory along, some developers are now offering flashy incentives to attract more people, according to an article published this week in Realtor Online Magazine.

At the Eden Brook community in Odenton, Md., which is an active adult community, the Ryan Homes developers are throwing in a gourmet kitchen upgrade for buyers who take a loan through its lender, NVR Mortgage. And some more ambitious active-adult developers are even helping to sell the buyer’s old home.

Competing for Boomers
Realtor Online Magazine reports that “there are an abundance of these kinds of communities competing for retiring Boomer buyers in part because local governments are eager to approve neighborhoods full of taxpaying households, without the high cost of funding public primary and secondary educational institutions.”

But before you decide to cut that hefty check for your new dream home, choose wisely. A home is an investment, and with economic conditions changing so quickly, it’s important to make a smart choice. Don’t get lost in the sales pitches and glorified hype. A gourmet kitchen upgrade may look nice, but it doesn’t guarantee long-term financial stability. Walter Molony, a spokesman for the National Association of Realtors, suggests that areas with a track record of slow, steady economic growth and home price appreciation are ones that will hold onto their values best. Boomers should consider checking out Gainesville, Fla., Ithaca, N.Y., Orlando, Fla., Tucson, Ariz. and San Antonio, Texas as good investment areas for a new home.

Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@homescape.com.