Purchasing An Aging Home
If more than 70 % of the U.S. housing inventory was built prior to 1990, and an aging housing inventory may present more opportunities for buyers searching to save money, according to an Aging Home Analysis.
“The number of homes that are 20 years old and older and likely in need of some major repairs is eye-opening,” says Jake Adger, chief economist at RealtyTrac. Given the low inventory of homes available for sale in today’s market, this challenge of aging U.S. housing inventory can also be an opportunity for buyers looking to save money and home owners looking to update their living space and improve the value of their homes.”
Older homes often need upgrades for energy efficiency and may lack floor plans or amenities that home buyers desire today, according to RealtyTrac’s analysis.
On average, homes built prior to 1990 sold for $233,211 this year, compared to $256,292 for newer homes.
“The lower price of older homes is not surprising given many are in need of some renovations and are more likely to have maintenance issues,” Adger says. “But this also presents an opportunity for buyers willing to take on that aging home. Those buyers can purchase at a lower price and face less competition from institutional investors,” who tend to buy newer homes.
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Source: Mortgage News 10-31-2013