Fed Cut to Trigger Senior Home Sales

• The Fed cut in interest rates is expected to trigger senior home sales to increase in the Fort Myers area, a hub for senior retirees.

• The drop in rates is expected to gradually impact the housing market, slowed by three years of interest rate increases.

• Seniors are hoping that lower home prices coupled with lower mortgage rates will make it more affordable.

Fed Cut to Trigger Senior Home Sales

The Federal Reserve’s cut in interest rates Wednesday is sending a message to the housing market, which is expected to see a sharp increase in home sales locally. Seniors who have been waiting out an interest rate drop have already been showing greater interest in the market in the Fort Myers area.

Inquiries from seniors have increased substantially over the past six months. Calls and mortgage loan pre-qualifications are already showing a marked increase.

Seniors are hoping that lower home prices in the region coupled with lower mortgage rates will provide a way to save money on living expenses. Their concern is understandable since Social Security is the top source of income for Americans in retirement.

Financial security is the biggest factor planning when and where to retire, but it isn’t the only consideration. Retirement experts say many retirees face challenges like rising costs on groceries, utilities and other expenses.

The AARP suggests another approach. The proximity to grandchildren and affordable real estate are key factors. Many folks considering retirement have checked out short term rentals to visit an area over time considering it for retirement.

The Fort Myers area, including Naples and Cape Coral has been a hub for retirees for decades. But warmer weather during summer months and risks from weather changes with global warming are slowing some retirees from plunging into the local housing market.

The number of people who relocate upon retirement fluctuates, based on such factors as politics, home affordability and cost-of-living rates. More than 3 million people age 65 and older relocated within the U.S. in the five years before the coronavirus pandemic, according to the U.S. Census Bureau.

“Retirees want to live in a place where they enjoy safety and access to good health care, especially in light of significant inflation and economic uncertainty. The ideal city will also have lots of ways to spend leisure time, along with good weather,” a new WalletHub report reveals.

Some retirees want to move close to family or somewhere with opportunities to work part-time.

WalletHub compared the retiree-friendliness of more than 180 U.S. cities across 45 key metrics in four categories affordability, activities, quality of life and health care to compile its 2025 list of best retirement cities.

Living up to its reputation as a haven for seniors, Florida has four of the top seven ranked cities. Florida’s favorable tax status is one of the key drivers for retirees. The state does not have state income tax, estate or an inheritance tax.

Orlando received the top ranking in the WalletHub survey. In addition to being one of the most tax-friendly cities, it is the ninth-cheapest city for homemaker services and the 20th-cheapest for adult day health care. It also ranks high when it comes to home health care facilities per capita and hospitals for geriatrics.