There are certainly varying theories about this. I used to believe a crash in home prices was inevitable. I've modified my thinking on this due to the rate of new families dwarfing rate of new construction, the much stricter underwriting and investor guidelines mortgages have been subject to for the past 10~ years, a rise in wages have actually made it easier for homeowners who have a low rate to stand pat, which will continue to cripple supply and banks having all but moved away from foreclosures. I don't see a crash in prices or an easy solution. I fear owning real estate will become more unattainable in the years to come. In many cases, it already has for millennials.
I don't understand the people worrying about interest rates when they bought a house for $100K that's now worth $1.3M. Now that the kids have moved out, sell your house and downsize to one that costs $500K and you won't need a mortgage at all.
Though the expenditure of money is perhaps not so much of an issue to those living in a mortgage free home, they are still living on fixed incomes. Packing up, downsizing and moving to another home, possibly in another state is not convenient or easily accomplished. We've been through that process twice, when we moved from Atlanta to Gainesville in 2000 and then 18 years later to move to Colorado. Moving a household after deciding what to discard, donate or take with you can be a painful and wrenching process as many, or most, things in our homes have memories or sentiments attached. Seniors I know who are staying in their homes of many years are not yet ready to sift through possessions accumulated for decades and discard "unneeded' things that evoke memories of happy times and years. We've now had to do that twice, and after being here 5 years I know at some point it will need to be done again by Trucker and me, or our surviving children. Moving from one place to another, be it a move across town to a different neighborhood, or one that takes you across a dozen states is stressful. In our 55 years of marriage we have lived in and moved from 4 apartments; owned and lived in 7 homes. In each case of apartment living I was pleased to move on, but every time we sold a home to move several states away I have watched the moving van, filled with a lifetime of memories, pull away through a veil of tears.
You say all this, but sellers are cutting prices left and right. They can no longer force buyers to waive inspections or contingencies. We shall see if lower interest rates during the busy season brings on the buying frenzy many real estate professionals and homeowners are predicting. Its very possible.
Most are likely closer to mine that has increased 4x, not 10x, after 25 years unless they bought in 06 during the bust
Our plan is to give our home to our son free and clear. He’s 47. If either of us live another 7 years he will be 55 and able to own in our 55 and over neighborhood. He’s our only child. I suggested he move here, keep his townhome that’s in an area that rents well and at high prices. He can lease it out which will give him additional income.
More on Boomers: they are apparently approaching 'peak burden' on the economy. They are a very large subset of the population (hence the name "boomers"), and they are about to maximize their Social Security payments as a group. They will also be maximizing their use of Medicare at some point. They are a risk to the stock market (80% of stocks are owned by people 55 years old or older, and as their savings runs out, they may start selling off stocks like crazy). And their retirements are creating a labor shortage. The U.S. economy may shrink without the extra labor, also having a negative impact on the stock market. The Boomer Burden is expected to last 20 years. If you think the U.S. has some serious national debt now, wait another decade or two and see what it looks like. Baby boomers are approaching 'peak burden' on the economy Half of boomers have less than $250k in assets. They are planning on being fully dependent on Social Security at some point, even though Social Security needs to be cut to have any hope of reducing our debt. The 'peak boomer' crisis might only get worse: A fifth of Americans 50 and up have no retirement savings, and the majority are worried they won't have enough money
Or... we're no longer building new houses like we did from the early '80's to '06 or so... I wonder which law/act killed the building boom we had going for more that 20 years... I'm sure I remember the name of it. Some one here knows what it's called.
You know what ?? All u chicken crap millineals can go pound !! Love being a Boomer ! I got chit and the XYZ M’s are crying. All of ya can go to hell . We worked
You could get a balcony with a big plant… just sayin there are options. I agree never live in a condo.
I know plenty of people 25-50 who are also enjoying those low rates. Many of the boomers came and bought with cash in my area.
Runs up national debt, runs up deficit spinning, creates tax laws that benefit the most wealthy and puts the burden on the middle class, takes away company pensions, makes it harder for the newer generations to achieve success then tells a generation that they need to pick themselves up by their bootstraps and work harder... Got it
