By Ramsey Judah
Say hello to the next great effect on the housing market: baby boomers. The offspring of arguably the “greatest era in the United States” (1946 – 1964) are in their senior stages and the lack of social media access back in the day made them some very busy bees in real life.
According to a survey conducted by the California Association of Realtors, baby boomers currently make up 32% of the United States population and own around 75% of all home equity in the country.
If that was not amazing enough, more than 50% of them own their homes outright. Compare that with the less than 19% under the age of 50 who do the same.
The survey also states that almost half of boomers who own homes plan on selling after retirement and almost the same number plan on moving out of state.
Most baby boomers are now in the retirement zone which means that more homes are going to enter into the market. But there are not enough buyers in the market to absorb the swelling of inventory due to the high restrictions on loans, sluggish economy, low wages and the endangered middle class.
The increase in inventory will put it at risk of turning into a very long buyers’ market which could bring it to a standstill for at least 10 years until it balances out.
Legislators in all levels of government really need to stop pandering to their egos and lobby groups and truly come up with ways to rebuild the middle class in order to fuel the engine of our real estate market nationwide.
The housing market is always a good indicator of the general US economy and it may start taking a dismal turn for everyone if something is not done soon.
Ramsey Judah is a broker with The Judah Group and can be reached at ramsey@TheJudahGroup.com or @RamseyJudah on Twitter and Instagram.