[quote=sdrealtor]. . . the kind of buyers I described are lifecycle buyers who are hedged in this market with other real estate. Time has already shown that NINJA buyers were realtively uncommon in our area. Lastly, the buyers we are talking about are far more sensitive to what they want than price.[/quote]
This is a good topic to bring up. Being in the “lifecycle-buyer” demographic myself, I can tell you that several of my “peers” are just waiting for the moment they turn 59.5 years old so they can retire their measly $12K, $37K or $59K mortgages. These are just my “peers” that do not already own their homes outright. Several also have rental properties – not “accidental” rentals they themselves had to move out of and couldn’t sell – these are properties they bought one “dog” at a time (cheaply), fixed up and immediately put into rental service for investment purposes. One former co-worker of mine, a retired SD police officer (now about 65), has owned 44 SFR’s (maybe has other ret cop(s) as “equity partners” on 2 or 3 of them) in 92114 (w/a few trickling in 92113 and 91945) for 25-40 years. His longest beat was the Skyline substation. There’s nothing smarter than sticking with the turf that you know inside and out. He DOES have help managing his properties and most are under Section 8 contract. I know another female retired SUHSD teacher (now about 62) who owns at least a dozen SFR’s in older areas of 91913 (non-MR areas). One is her principal residence and she manages the others herself.
I guess what I’m saying here is there IS a lot of money in the baby-boomer demographic, even in common former worker-bees aka “regular people.” You can’t judge a book by its cover. What this demographic wants for their final home is IMPORTANT. For instance, if I don’t get my perfectly flat driveway, no steps to the front door, one-story only property with a rock or brick FP to the ceiling by the time I’m 62, then WHEN will I get another chance to buy it??
My experience with this demographic (and also being there myself) is that no, they won’t overpay but when they see a property that is exactly what they want for their possibly “final” home, they REALIZE it may not come around again for YEARS and they don’t have YEARS to wait. IOW, if you are already intimately familiar with the area you will be purchasing in, there is no need for analysis paralysis. You just make the best deal you possibly can and move forward :=]
