Baby boomers are aging and their children are
moving out, so many of them want less space and upkeep.
The ailing economy is taking its toll on some homeowners who are struggling
to make monthly payments.
The result is a rise in the number of people selling their homes and buying
something smaller.
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"There's a healthy amount of downsizing going on in the Valley," said Jay Luber of Lifestyle Lending Group.
Evidence of the trends is found in the record number of luxury homes for sale Valley-wide, and the recent uptick in the number of people behind on their mortgages in Arizona.
The number of homes selling for more than $500,000 has nearly doubled since 2000, reports the Arizona Regional Multi-Listing Service and Valley real estate brokerages.
Many baby boomers bought large family homes in the 1970s and '80s, and their home values have skyrocketed. With the stock market down, some are selling, buying a smaller luxury home and putting the rest toward their retirement. Other homeowners are compelled to sell for other reasons.
"Unfortunately, others have gone into debt and gotten behind on their payments and need to sell," Luber said.
The state's mortgage delinquency rate has climbed to 4.76 percent from July to September, from 4.4 percent in the previous three-month period, according to the Mortgage Bankers Association of America.
Jay Butler, director of the Arizona Real Estate Center, points out that Arizona lost more than 17,000 jobs last year.
"I am running into more sellers who are either changing jobs," said Tom Bryant of Realty Executives, "have been laid off or just have concerns about the economy."
The Arizona Republic
Mar. 2, 2003