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The Masked Tulip

Aging Boomers Could Burst Housing Bubble

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The common perception among economists is that the current housing bubble will be a relatively short-term affair that should see a return to normal within the next few years.

But according to a study by two University of Southern California researchers, a bubble of even more monumental proportions lies just ahead. They call it the "generational housing bubble," and maintain that it will be fueled by the same Baby Boomers who have been bidding up prices since 1970 as they moved higher and higher on the housing ladder.

Now, though, the 78 million Boomers are about to enter the years when people tend to become sellers rather than buyers. And as a result, they expect "many more homes (will be) available for sale than there are buyers for them."

http://www.sfgate.com/cgi-bin/article.cgi?...8/REDHVBQ2L.DTL

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The common perception among economists is that the current housing bubble will be a relatively short-term affair that should see a return to normal within the next few years.

But according to a study by two University of Southern California researchers, a bubble of even more monumental proportions lies just ahead. They call it the "generational housing bubble," and maintain that it will be fueled by the same Baby Boomers who have been bidding up prices since 1970 as they moved higher and higher on the housing ladder.

Now, though, the 78 million Boomers are about to enter the years when people tend to become sellers rather than buyers. And as a result, they expect "many more homes (will be) available for sale than there are buyers for them."

http://www.sfgate.com/cgi-bin/article.cgi?...8/REDHVBQ2L.DTL

Think they're being a bit previous. The EARLIEST of the boomers were born in 1946 and are therefore only 62 now. They are probably at their wealthiest - why would they want to trade in their homes at this stage? When they start getting decrepit, perhaps, but that's probably another 15 years down the line.

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Hmm I can only imagine debt interest payments increasing. With fixed incomes, selling assets to release a bit of cash maybe a good idea.

Not everyone wants the hassle of BTL or renting out a room.

The current retiring boomers are most likely to be the ones on good final salary schemes AND to have paid off their mortgages.

Unto those that have, more shall be given...

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Guest Charlie The Tramp
The EARLIEST of the boomers were born in 1946 and are therefore only 62 now.

Wow, I`ve just become a member of the Silent Generation and there was I thinkng I was a Boomer.

The best and honest Generation are the Silents. :D

Unto those that have, more shall be given...

Yep, as the old saying goes Money goes to Money. ;)

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Hmm I not so sure all baby boomers are debt/mortgage free...

Theres a lot who flutter on horses, gamble on the stocks, or just "spending the kids inheritance". If we could look, the cupboards are bare. I doubt every boomer has not given into the "financial advise" by well paid business men in suits who are looking after the bank and not the client. We'll see if there is really a generation of boomers whose wealth [mostly apparent in recent years] is more than skin deep in the comming years.

Theres another thread today where financial pitfalls arent just limited to the young generations.

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  • 297 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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