The CAR has been publishing goodies for realtors to use on their blogs – you may have seen them? The part in the red circle is what I’d like to address.
My biggest concern coming down the pike is boomer liquidations.
The above graphic isn’t boomers only, but they sound like people who are at risk of having to sell their house to survive (unless they are all renting?). For those boomers whose eyesight may be a little fuzzy when looking at the image – I’m one of you!
Here’s what they say above:
67% of women agree they cannot possibly save as much money annually as retirement planning tools say they will need to invest in order to have a comfortable retirement.
25% of women feel financially secure.
36% of men feel financially secure.
Obviously this polling company must have found a bunch of losers to come to these conclusions. But even if it was half this bad, it could be a problem.
We are currently enjoying a real sweet spot in real estate. Not enough people want to sell (yet), and the market has been very orderly.
But if people aren’t financially secure, at what point do they sell their house to survive?
Baby boomers are susceptible to losing their health/job/spouse, and all it would take is for a handful of those around you to cash-out and run. Once you have a downward trend in pricing, then the lower-motivated sellers will wait, because they aren’t going to give it away. Then who is going to sell?
The issue will probably work itself out over the next 10-20 years, and most homeowners probably won’t feel a thing. But there could be neighborhoods where a quick exit by a handful of sellers could cause some pricing chaos.