I suspect they’ll continue to work. And that may not be a bad thing because what we call ‘work’ has changed. Ain’t nobody working in steel mill or on the railroad for to long. But JtR could keep doing what he does for a long, long time somewhere.

Actually, as I think of it many of us Men will simply flounder with all that idle retirement time. That said, Wal-Mart isn’t the most desirable thought, but there will be more options in the future for all of us.

She still would have to sell at some point to reap the financial benefit, otherwise it’s only on paper.

The point is that there will likely be a large number of folks retiring over the next 10+ years who will realize that they don’t have enough in savings and investments to fund their retirement. They will then be left with possibly renting out rooms in their home to strangers or selling and living off of the equity that they’ve hopefully built up.

Sacramento might even encourage this, since it will mean higher property tax revenues after all those homes that were sold so many years ago for +/- $50k go on the open market for much more than that.

Homeownership in California has never been about sustainability.

A budget? Har Har!

Delayed gratification? Pish Posh!

HELOC? Where do I sign?

They have never had to think about holding a note to maturity because interest rates have only gone one direction for 30 years, and values have only gone one way for the most part of that time too. Ask someone what would happen if housing prices stayed put for 20 years and you’ll get some funny looks… Why would they do that? Don’t people know that I own that house?

We’ve done 100 years of capital appreciation in the last 3. What will we do for the next 70?

I suggest we can live off of stimulus checks! Free aged cheese for everyone!

Chuck

I sold their house in Chino Hills (riverside/san bernardino area) in 2006 for $700k ($200k mtg)(2,800sf) and they bought a brand new 2,000sf custom home in Boise, ID for $300k all cash.
I bet the riverside home is down to $350 now…

Thus they are debt free the right way, have a 100% owned home, and put $200k cash in their pocket.

They kept their rental home on a golf course as it is cash flow positive and was bought in 2000.

Their entire neighborhood of new home buyers is from California!!! Hmmmm…

ps: 6 months later my grandparents sold their home in Huntington Beach and moved up there as well taking about $800k in CA equity out of the state…

I think this ties in with what you’re saying, and I think there will be a lot of boomers waking up to a harsh reality when they retire en mass over the next decade. Will those in So Cal be forced to sell their home, taking their equity (assuming they bought decades ago and didn’t pull money out along the way), and move somewhere cheaper?

http://www.cnbc.com/id/33700371

Boomers in Denial About Retirement Savings

Only 23 percent of pre-retirees are saving more for their retirement than they were a year ago, the survey found. Most, some 57 percent, are saving the same amount, and 20 percent are saving less.

Perhaps even more startling is the extent to which their savings are falling short of their goals. On average, these pre-retirees expected they would need $800,000 to fund their retirement. However, most had only saved about $300,000.

Despite their inadequate savings, nearly two-thirds of the group lack any formal plans for retirement savings or spending strategies.

While I know this isn’t the authors intent, lets also assume John and Sue’s kids are either living with them at the age of 30 or have moved out of California to have what little of a life that John and Sue had at their same age.

John and Sue while not directly the cause of the states inexorable and close to now unstoppable decline, are surely suffering the symptoms.

Indeed, there was something I read just recently about the flood of retirees to Texas from CA and NY.

About one in seven housing units was vacant in the third quarter, according to the Census Department. That’s the highest reading since the government began collecting such data in 1965.

****

While some areas may have a lower inventory, will they be able to remain elevated while the other, more saturated areas lower their prices to liquidate? Or, will it be more like a slinky?

Cheese is best aged.