Home Values for Seniors on the Rise
Mainstreet, March 5th, 2010
You might not know it, but there’s an index that tracks the average
value of homes owned by Americans 65 and over — and it’s most recent
reading skews upward. Here’s why Grandma and Grandpa might be smiling
this week.
The index comes from Golden Gateway Financial, specifically from its
Reverse Mortgage index that
tracks home
values for older Americans.
In the past seven quarters, home values for U.S. seniors have either
been flat or in decline, Golden Gate reports. But that skid ended in the
third quarter of 2009, as home values for older Americans rose from
$369,762 to $381,895 in the fourth quarter of 2009.
Seniors
who reside in states that were hit particularly hard during the Great
Recession may not share in the good news. Golden Gate’s study says that
homeowners in Florida, Texas and New York saw a “significant decline” in
their home values. But senior homeowners in “flyover country” (in
states like Kansas, Iowa and Nebraska) saw significant upticks in their
homes.
Obviously, that’s good news for many older Americans who may rely on
the value of their homes to help fund a comfortable retirement. Says
Eric Bachman, chief executive officer
at Golden Gate, "Even a minimal gain in home
value is a reassuring sign for older Americans because many of these
individuals live on a fixed income and rely on their home to support
their retirement lifestyle."
Some specific data from the Golden Gate index includes:
- Self-reported senior home values rose by a little more than 3%
between the third and fourth quarter of 2009.
- The average existing forward mortgage
debt dropped slightly to $143,360.
- Statistically, home values for seniors are low compared to Golden
Gateway’s figures from 2008 levels. The average value of home in 2009
was just $390,328, down from $437,496 in 2008.
Read more of this article.About Reverse Mortgages: If your home's value is beginning to return to normal levels, then it might be time to consider your options insofar as a reverse mortgage is concerned. Learn more at NewRetirement.com.