The price of homes increased much faster over 2021 and at a much quicker pace than many years prior. In some areas research showed that home prices rose a whopping 16.9% to 20% as compared to just one year prior in 2020. In some of the most desirable spots in the country, prices rose a jaw-dropping 25.6%.
Projected home price increases for 2022
Many real estate experts and analysts have predicted that housing price increases for this year are expected to range between five and 14%. There’s no cut-and-dry way to predict the exact amount of increase. It is however highly likely that most homes across the country will see an increase in value. The competition amongst a larger number of buyers and the available homes for sale is one of the greatest driving factors to home price inflation. This can make it increasingly difficult for any first-time buyers hoping to purchase a home right now and win out in a bidding war against other buyers able to use cash or equity from a previous home sell.
This has led many senior adults to consider the prospect of selling their home to their children as a means to help them enter the homeownership world.
Some Americans entering their retirement years, or well into them, that are considering downsizing or moving to their dream destination retirement spot are considering what it would look like to sell their current home to their children or another family member to help them more easily obtain homeownership.
This can be a very promising and beneficial way to help first-time buyers purchase a home, but it is advised that you work with a real estate professional to help you through all of the legal specifications that would be required of doing so. The government refers to these as non-arm’s length transactions where both parties already know each other and are seeking to benefit from the deal. These types of deals are subject to more scrutiny and could trigger a heightened interest in the tax filings of either party. You want to make sure you have all of your financial and legal ducks in a row to avoid any complications or unneeded probes in your tax and financial practices.
This can be a great idea to help younger relatives in your family who are struggling to find a home or win out against other buyers in bidding wars for homes that are just beyond their reach as far as price is concerned. But it is not as simple as merely writing up an offer and transferring money. There is more that needs to be done. Make sure that you are working with a real estate professional that can help to cross the I’s and dot the Ts and make sure both parties are well protected in the transaction.
It can be very satisfying to know that you are moving on to your dream retirement plans while also helping someone you care about greatly achieve the dream of homeownership and begin the next chapter in their life as well. It also helps to have a Senior Real Estate Specialist ( SRES) on your side to assist in this.
For more information on purchasing a home in San Tan Valley and other surrounding real estate, please contact us at any time.