They are not in a position to buy a 400- 600K home.
Expect a free market adjustment.
That’s not true in Nashville
Millennials are buying homes and gentrifying rundown areas like crazy
Decent boomer homes will go to wives then kids or grandkids
Like mine
Retirement communities are another story
Why would I buy a house from a boomer?
Ya’ll build subdivisions with 2 houses per acre.
I’ll pass!
If nobody is buying the 21 million dollar homes, then they aren’t 21 million dollar homes.
For seniors who like where they live and have significant equity in their home, why downsize when they can take out a reverse mortgage and draw from that until they pass?
If life were a football game, I’d be in the fourth quarter. It’s just me and my wife; we have no kids or grandkids. When the final gun sounds to end the game, we really won’t give a sh!t what happens.
Why would a generation of self-absorbed narcissists want to purchase houses and other properties, when they don’t want to get married and have children? They’re too invested in the pursuit of pleasure to have concern for future generations.
I broke the rules and read the source article which is in the WSJ after you follow the link to Fox. Excerpting an excerpt should be banned on FR.
The real article in the WSJ is actually a good if lengthy read. Bottom line the surplus housing is Senior communities in FL and AZ and some dying Midwest towns. No surprise in any of it.
Some baby boomers rose the housing wave up, but as their homes get sold they can generate a wave heading down.
Where are the 60-million aborted babies when we need them?
I’ve personally been thinking about the same impact it will have on the stock market when they all go to cash in their 401ks and IRAs.
Every couple of years an article like this comes out. Boomers selling their homes will cause a housing crash. Boomers selling their stocks will cause a market crash. Boomers not driving anymore will cause an auto industry collapse. Boomers getting old and sick will cause a health care crisis.
Developers in Central Florida are building like crazy.
Over 1000 homes being built within a three mile radius of my home. And this is halfway between Orlando and Tampa where building has exploded!
But who will buy them?
That is rhetorical question, right?
Immigrants, legal and ilegal will buy them, of course.
Now that we have established that, The only question is the price.
But who will buy them?
That is rhetorical question, right?
Immigrants, legal and ilegal will buy them, of course.
Now that we have established that, The only question is the price.
I traveled back to Arizona last year to sell our home there because the market was soft when we retired and moved here.
Now we own 3 homes free and clear of debt. Our primary home is our farm. We built the home 7 years ago. We also own a home in Pawleys Island, SC at the beach. And we own a lake house 10 miles from here.
Our daughter is in the wills to inherit the 3 homes. She owns her own free and clear home 5 miles from our farm in a rural area.
Whether she decides to move into our larger home here on the farm after we pass, makes no difference to us. She can do what she pleases with the then four homes she'll own free and clear.
The next generation gets to decide what will happen, not us. But we will have left her with paid-off, real property assets, not debt. That should make her decision of what to do with the homes a little easier financially.
I live in the Phoenix area and am very familiar with Sun City and Sun City West. I am a baby boomer who will retire in the next couple of years.
I wouldn’t live in these communities if my life depended on it: 60’s era boring cheap track housing with MINIMAL landscaping. There are literally thousands of homes which have this for landscaping: sparkly white or turquoise rocks (much bigger than gravel) and a couple of pathetic ugly cacti. Nothing else. I’m sure the interiors of these homes have never been improved/updated in 60 years.
Additionally both communities are on the very far west outskirts of Phoenix. If you were to live in Sun City or Sun City West and work in Phoenix or Tempe/Scottsdale, your commute time would range between 60 and 90 minutes.
Anyone trying to sell their home in these geezer communities is going to have a hard time.
Hmm. I guess I’ll have to find a buyer fleeing CA.
I'm in my mid 50s and my wife and I made the decision a couple of years ago to sell our home and move to an over-55 condo community, that was in process of being built in our town. Took me over a year to finally sell the house and we took nearly a $100K loss on the sale.
No regrets though. Glad to be finally rid of that large home and it was nice to not have to rake leaves this fall - looking even more forward to not having to shovel snow. It's getting tough to move big houses in this area (Southern CT) due to the incredible property taxes. I don't know how younger people can afford it. Not only is the typical home around here over a half million dollars (metro NYC) but property taxes will run you around $15k a year. In fact, my properly tax bill has been higher than my mortgage payment for years now. I just don't know how younger people are going to do it - my own grown children are in apartments, owning a home is out of reach for them (despite fact they both make what I consider a good salary). I tell them it's more important to start funding their retirement at this point.
So I see a major correction down the road with real estate as people move from owning homes to apartment/condo living.
By the way, the over-55 condo community I just moved into completely sold out and all units were sold pre-construction. Huge demand for these communities as Boomers continue to retire.