The people who have and want to sell can't ...because the ones who need to buy can't afford 'em. The housing market is still upside down, and is going to remain upside down for ...twenty years? At least.

The twin "lost decades" in housing ...

10,000 baby boomers are retiring per day. This two decade trend has only started but will certainly have an impact on the housing situation moving forward. In most economic reports the boom and bust of the housing market was not factored into the equation. Many boomers will downsize or sell as they age. This is just a matter of demographics. While trends are harder to predict, we know that 10,000 baby boomers will be retiring on a daily basis for well over a decade. What does this do to housing? The challenge we will face is that the younger home buying generation is less affluent and more in debt prior to purchasing a home. Instead of growing households, we saw over 2 million young adults move back home to live with their parents. So much for household formation taking up all that excess demand. The recipe for the moment has been to constrain inventory and artificially push rates lower but this has done very little to increase actual financial security. What happens when millions of baby boomers retire?

...read the whole thing. This is a mess. Of course, if you want to buy a home, there's going to be a buyer's market for a long time to come.

Posted by: fairwhether at 06:07 AM | No Comments | Add Comment
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