The cure to the housing shortage may be retirement homes: The coming tsunami of homes over the next decade may come from an unlikely source.
There is a silent trend unfolding across the United States. Like most things, it is slowly brewing and will tip over in the next decade or so. While many baby boomers feel as though they will never need it, millions upon millions will end up in retirement homes. Retirement homes are not cheap so in many cases people will need to sell their property to unlock that stored up equity. Zillow ran a report highlighting that 34 percent of homes in the US are owned by people that are 60 or older. The estimate is that 20 million homes will hit the market starting now up until the mid-2030s. Combine this unfolding trend with the record number of Millennials living at home and you have a housing market that is struggling to find its footing. In places like California, the issue of affordable housing is off the charts. What will housing look like with this tsunami of homes hitting the market?
The overall trend
Zillow came right out and states the trend in clear terms:
“Over the next 20 years, more than a quarter (27.4 percent) of the nation’s currently owner-occupied homes are likely to hit the market as their current owners pass away or otherwise vacate their homes.â€
That is an impressive amount of homes being added to the market:
What I think some people fail to take into account is the expensive cost of retirement and nursing homes. Here is a look at costs:
That is a lot of money per month. Some feel that people are simply going to hand over their homes to their kids and live happily ever after. The reality is, many are going to require assisted living. And this assisted living might go on for years. So many boomers will need to sell their home merely to utilize the money to survive.
This grand shift of generations will cause market disruptions. Ultimately we will witness the greatest shift of assets in human history over the next two decades. In places like California, assisted living costs are incredibly unaffordable. It will be difficult to sustain this path especially when you consider that for most Americans, their net worth is tied up in their home. I’ve made this argument many times but the equity in your home is only useable when you extract it (either through selling your home or going into debt with a loan on your property).
California has already tipped over into a renting state. Bills are routinely hitting Sacramento in terms of making housing more affordable or adding more high-density housing in NIMBY neighborhoods. California also has a large aging population. It will be telling to see how this demographic trend impacts the state. Make no mistake that this will be a larger trend and the data is clear – more homes will hit the market and aging has everything to do with it.
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139 Responses to “The cure to the housing shortage may be retirement homes: The coming tsunami of homes over the next decade may come from an unlikely source.”
It Already Popped- US Pending Home Sales Plunge Most Since 2010
https://www.zerohedge.com/personal-finance/us-pending-home-sales-plunge-most-2010
I beg to differ. Zero Hedge cherry picked the date of May 2010 but by their own chart shows mom pending sales increased if you choose say May 2013. and yoy pending sales also increased.
As I demonstrated in the previous thread, JamesJim has a habit of posting links that don’t support his claims.
I guess JamesJim hopes that we’ll just read his “Already Popped” blurb, and assume the linked article supports his claim, without actually reading the article.
Ironically, JamesJim spammed this same link in the previous thread, so he seems to think that it offers powerful evidence for his position.
not to mention ZH is ‘sky is falling’ narrative. they’ve been calling stock market crash literally for over a decade
Old folks will leave CA for AZ or TX. Most don’t have children who want their fun loving life interrupted to take care of their parents, so these children will see that they inherit nothing. This is life in America. Personally, I have two million friends($).
Maybe. Property taxes in California are generally significantly lower than Texas, making it much more attractive in that aspect for retirees. We shall see.
Property tax rates are higher in TX , but on a lower cost. Also, people 65 and over do not have to pay school property taxes. Texas does not have an income tax. I pay a lot in state income taxes(200k income), but when you live in Malibu and have too much money, it doesn’t matter to me.
The rents in TX are less than half of what they are in SoCal. I recommend renting in TX, and home ownership in CA(without a mortgage).
Daily reminder that boomers:
* Had it better than any generation in history
* Were raised on home-cooked meals
* Mom stayed home and gave them attention
* College was cheap. A fraction of what we pay
* A degree (in anything) would land you a good job
* Corporations kept you for decades
* Stock portfolios and homes increased 4x in value
* Retirement was considered a human right
And in return they..
* presided over the outsourcing of jobs…
* and unending mass immigration…
* …leading to the underclass’s opiate-drenched collapse
* paid illegal immigrants to tend to their homes
* fed us frozen pizza and fruit juice, no cooking
* hyper-industrialized prison, healthcare, education, housing
* bought plastic junk and used toxic cleaning supplies
* triloscan soap, olestra chips, phthalate shampoo
* prescribed antibiotics liberally, nuking our gut flora
* gave children Ritalin, Prozac, Wellbutrin, Klonopin…
* …pink slime, lead fillings, accutane, Percocet
* got divorces and bought sports cars
…and now they tell us we need to cut back on the “avocado toast”. Good riddance to the greedy boomers.
Your description of a Boomer
* Had it better than any generation in history:
Well my Millennial kids had it pretty good. The house they grew up in was one bedroom bigger than the one I grew up in (I’m a Boomer) with one less kid to fill it.
* Were raised on home-cooked meals:
That describes both my kids and myself!
* Mom stayed home and gave them attention:
Ditto!
* College was cheap. A fraction of what we pay:
We both made it through college without massive debt.
* A degree (in anything) would land you a good job:
Good job is relative, but I’d say we both got jobs in our degree field.
* Corporations kept you for decades:
LOL I got laid off after 12 years. I got a job with a small private company which has been sold three times since then to progressively larger companies.
* Stock portfolios and homes increased 4x in value:
We got significantly richer when our WWII Gen. parents died.
* Retirement was considered a human right:
I have a 401k and a $500/mo pension that can’t go up, plus Social Security. My Millennial Son-in Law will have a nice Government pension.
Stereotypical nonsense.
The “corporations kept you for decades” lifestyle was eroding by the late 1970s (when I was in high school), and gone by the 1980s (when I was in my 20s, other Boomers in their 30s). Bruce Springsteen sang about it in the early 1980s (e.g., “Born in the USA”)
Likewise, many Boomers have no corporate pensions.
This “paid illegal immigrants to tend to their homes” — nonsense. Most Boomers never had servants. My family certainly never did.
As for mass immigration, the 1965 immigration reform bill passed when the oldest Boomers were 19. Reagan’s immigration amnesty occurred when Boomers were in the 20s and 30s, the oldest just entering 40. We hardly had any political power.
Whatever occurred in the 1960s through 1980s, the politicians in charge were Greatest and Silent Generations, some even older (e.g., Reagan).
Clinton was the first Boomer president. Boomers didn’t rise to serious decision making levels, in big numbers, until the 1990s. By then, jobs were outsourced, and diversity was here.
Most of your post is just an incoherent ramble.
* “fed us frozen pizza and fruit juice, no cooking”
So, you’re life is messed up because your mom fed you frozen pizza. I too have eaten frozen food. I survived.
* “bought plastic junk and used toxic cleaning supplies”
Your life is a mess because the generation before you bought a lot of “plastic junk”? Is that what you tell your therapist?
* “got divorces and bought sports cars”
Sorry your folks got divorced. But I wasn’t aware that sports cars were responsible for ruining your life. Maybe you can bring a class action suit against Ferrari?
Now do the part about boomers going to VietNam
I am a greedy boomer and I approve this message.
I could pick your complaint about the Baby Boom gen apart point by point, but I won’t bother.
I’ll just state that almost every evil you attribute to the Baby Boomers, who did not come into real power until at least the late 80s, and mostly the 90s, can be attributed to the generations that preceded them.
Outsourcing of jobs- this really began in the 1970s, and it was the whole reason the Vietnam War was fought, and for Nixon’s famous “detente” with China. About 40,000 Baby Boom boys, most of them draftees, came home in body bags, to make life safe for corporations in one of the world’s slave labor havens, all of which you can thank members of the so-called Greatest (not!!)Generation, like Johnson and Nixon… and of course, Reagan. HUNDREDS of thousands of Baby Boomers in their late 30s and 40s lost their high-paying production jobs in the wave of outsourcing and factory closings of the 80s and 90s, and many never got a foothold to begin with.
Unending mass migration- this began in the 80s, under the Silent Gen political leaders who were firmly in the saddle at that time.
Hiring illegals to tend their homes- upper income people have always done this. Always. Don’t blame a generation, blame a certain class of people who have always been the same.
Fed us frozen dinners, no cooking- our Silent Gen parents parked us in front of the tv set to get us out of their hair, and fed us Tang, Cheerios, Wonder Bread, and endless TV dinners. It was the Baby Boom generation that first promoted organic food, and a “back to earth” lifestyle.
Hyperindustrialized prisons, education, healthcare, and housing- this all began under MUCH older generations from the end of WW2 forward, and it had some good points- like making home ownership possible for people who could never aspire to it before ww2. The industrialization of health care began in the 60s, when the oldest Boomers were about 20 years old. The industrialization of education began in the 1890s, by people who went to their graves by 1930
Bought plastic junk & toxic cleaning supplies- you should have seen the stuff our parents were buying in the 50s!! Everything in aerasole spray cans, no less, and everything on melamine dinnerware.
Prescribed antibiotics liberally- we went very light compared to our parent’s generation, when penicillin was prescribed for just everything. And keep in mind what life was like before antibiotics- I would have died from pneumonia in 1987 without them.
Gave children psychotropic drugs- not the first to do this, thank Big Pharma for this, not a particular generation. Let it be said that the thinking in the psychiatric profession that mandated those drugs was originated by an older generation, not us.
In short, you’re blaming the Baby Boomers for stuff that was well underway when they were still high school kids, or barely even born. Or their parents were still kids.
Chim Ritchalds,
You’re Welcome.
No need to want Baby Boomers approval. All they do is talk nonsense. They all know how good they had it back in the 1960’s to 1990’s. My father bought beach front property in So Cal in the 1970’s. He bought an acre and built a three story house on it with two garages. The homes was 7 bed and three baths. My father retired from the Navy in 1974. He was a lowly E-6 and became a small time general contractor. The biggest thing he ever did was build a house. He only had one full time employee. He was able to raise 4 kids, build a home on an acre of beach front property, have three cars and more on a small time general contractor’s job. Today he’d be lucky to have an apartment with two cars. His highest level of education was GED.
My uncle bought a home and raised two kids on job he got a supermarket. He started out as a bag boy and became a butcher. Butchers today are making around $16 and hour there. My uncle was able to buy a three bed home, two bath with that job and raise two kids he adopted. Today he would be lucky to afford and apartment with section 8 help on that job.
So don’t listen to these Baby Boomers. They hope you either don’t know or remember how good they had it. Most of the ones here keep telling you a single thing that happened solely to them as if that’s something general for all Baby Boomers when it’s not. See, they can’t even reason correctly because they’re so illogical in their thinking.
kent: Baby Boomers … all know how good they had it back in the 1960’s to 1990’s. My father bought beach front property in So Cal in the 1970’s. He bought an acre and built a three story house on it with two garages. The homes was 7 bed and three baths. … He was able to raise 4 kids …
Sounds like YOU had it pretty good, being the son of a Baby Boomer. YOU were raised in pretty comfortable surroundings.
Be grateful to Boomers for your happy childhood, and the head start your Boomer parents gave you in life.
Son Of Landlord congratulations for proving my point on Baby Boomers generally not thinking logically. Growing up in a large home doesn’t mean anyone had a happy childhood. Why would you think lots of money equals happiness? It doesn’t and that can easily be proven by a simple google search on all the people with money who have done horrible crimes or had their life ruined through an imbalanced lifestyle. You know nothing of my childhood to make such a statement.
Kent, you’re contradicting yourself.
First you say: They all know how good they had it back in the 1960’s to 1990’s. My father bought beach front property in So Cal in the 1970’s. He bought an acre and built a three story house on it with two garages. The homes was 7 bed and three baths. … My uncle bought a home and raised two kids on job he got a supermarket. … They hope you either don’t know or remember how good they had it.
You’re saying that Boomers had it “good” because they could buy big houses for little money.
Then you say: Why would you think lots of money equals happiness? It doesn’t and that can easily be proven by a simple google search on all the people with money who have done horrible crimes or had their life ruined through an imbalanced lifestyle.
So … did Boomers have it “good” because they could afford big houses? Or did Boomers have it “bad” because big houses and money doesn’t equal happiness?
Which is it?
You seem to want to condemn Boomers for being wealthy. Then complain about your own hard luck, despite growing up wealthy.
Son of Landlord you’re making up a straw man. You really have issues with self worth because you’re so condescending towards people. You tell them what they think and make up multiple fallacies to support your claims. You tell people how they should feel too. I never said anything you claim and won’t think or feel what you say I should, nor should anyone else listen to you. Your claims of millennials, gen x and Baby Boomers all being born having the same opportunities and experiences is nothing more than a lie and a fantasy only you want to believe.
kent: I never said anything you claim …
I quote your own words.
Your claims of millennials, gen x and Baby Boomers all being born having the same opportunities and experiences is nothing more than a lie and a fantasy …
My claim is that every generation has migrants and millionaires, crooks and cops, Nobel prize winning scientists and high school drop-outs, etc. Is this not so?
How then can you generalize about a generation? If you knew only a person’s age, and nothing else, how can you assume his or her income, lifestyle, etc. Zuckerberg is a Millennial, as is the illegal mowing his lawn. Brat Pitt is a Boomer, as is the Greater at Walmart.
People should stop blaming other generations for their failures. If you must blame, blame the handful of oligarchs who run things, and whose ranks include every generation, the older passing the scepter to the younger.
Son Of Landlord who said it’s the Baby Boomer’s fault they had access to lots of cheap land in Southern California in the 1960s-1980s? See this is what you call a “Straw Man” because it’s an easy accusation to make that you can knock down quickly. You keep doing this over and over, even though you’ve been advised of your behavior on this blog. Do you think the next time you do it that it’ll work after it’s already been pointed out to you? We’re aware of what you’re doing and not falling for it. Why don’t you stop making up things? No one blamed Baby Boomers for having the ability to buy a home on cheap land, raise multiple kids, save for retirement, go to college without incurring debt, give themselves huge pensions and more. What has been pointed out about Baby Boomers is they have had these things and generation X and Millennials didn’t because they weren’t born when these things were readily available in the same way. You’re calling people failures for things they can’t even try to succeed in because it wasn’t available to them. Do you see how condescending that is?
kent: You’re calling people failures for things they can’t even try to succeed in because it wasn’t available to them.
Circumstances change. Old opportunities are foreclosed, but new ones arise.
Every generation has failures. And despite hardships, every generation manages to produce success stories.
Sure, Boomers invented the computer on which you wrote this stupid diatribe. They also invented the Internet you transmitted it on. They also protected you from measles, mumps, chicken pox, and other diseases that are making a comeback since the next generation does not believe in science. Boomers created amazing market places on the Internet, cleaned up stinking rivers, air, and dumps. They invented cell phones, solar photovoltaic panels, wind generation, and built more efficient lighting and cars. I could go on, but your answer would probably be “Ok, boomer” since your generation hasn’t done anything remarkable yet, other than design apps for cell phones. Quit blaming others for your stupidity. PS: This Boomer fed her daughter good, homecooked meals AND worked AND put her through college without DEBT.
The next thing Millennial’s are going to complain about is reverse mortgages.
How could Boomer’s do that to their house and equity, the house that the Millennials are entitled to… that is the Millennial’s equity not the boomers !!!
Millennials had great plans to live in the Boomer house…. it’s theirs !! And what’s worse the Millennials have to move out and pay *GULP* Rent ??? Rent they can’t afford. The 50’s and 60’s were supposed to be the Millennials golden years with their parents gone and out of the house.
The Boomer’s are entitled to free government funded (i.e. tax payer) nursing homes and health care to boot.
Meanwhile us Gen-Xers will just sit back with our popcorn and marvel at the laziness and entitlement.
Problem is us GenXers will be taxed to death to cover the laziness and entitlement. Boomers are retiring so they’re not paying taxes. Millies and Zoomers are too lazy to work. So who’s left? Us. We’re going to be out voted and forced to pay for it all.
You guys are full of it. Worker productivity has done nothing but go up for decades and is higher than its ever been despite claims to the contrary:
https://www.bls.gov/opub/ted/2018/images/labor-productivity-up-1-1-percent-from-fourth-quarter-2016-to-fourth-quarter-2017.png
If millenials/gen-z was truly as lazy as you guys say then productivity growth rates would’ve gone flat or dropped a whole bunch and yet it hasn’t a bit.
The US’s worker productivity has consistently been among the highest in the world too BTW so you can’t claim we’re lazy vs other countries either.
Also while they’re doing much better than millenials/gen-z gen-x’s wealth is far worse off than the boomers or silent generation:
https://www.pewresearch.org/wp-content/uploads/2018/07/FT_18.07.19_WealthGenX_only-ones-recover-wealth.png
Really while ya’ll patting yourselves on the back the reality is boomers/silent gen screwed you too, just not as bad as the younger gens.
Meanwhile millenials/gen-z wages are usually significantly worse than prior generations at the same age (adjusted for inflation) and they’re saddled with more debt at that same age too and with less benefits as well. That they end up being largely broke and living at home with their parents is almost entirely the result of forces outside of their control.
But go ahead and keep blaming them instead of a Congress that has a avg. age in the high 50’s to low 60’s and a President who is in his 70’s. And Obama was 49-50 when 1st elected. And W Bush before him was around 54-55 when 1st elected.
tts
You’re full of doo doo. Millies/Zoomers are the last ones in to the office and the first ones out. They’re the ones whining about a “work life balance”, which is short for I want to work as little as possible. Laziest entitled whiners the world has ever known. GenX is who does all the work in this country. Boomers are retiring and Millies/Zoomers are sipping $9 lattes.
Just go away with your nonsense.
@Mr Landlord
“You’re full of doo doo.”
Hey if I’m as clearly wrong as you say then it should be trivial for you to show it since you supposedly know what you’re talking about right?
I already posted the links showing productivity though so good luck with that.
“Just go away with your nonsense.”
If you can’t deal with others posting info. contrary to your BS rhetoric then don’t post at all.
Meanwhile us Gen-Xers will just sit back with our popcorn and marvel at the laziness and entitlement.
You imagine that Xers are a uniquely hard-working generation?
Funny, but I remember the 1990s, when Xers were known as slackers. Indeed, they were famously called the Slacker Generation, a term that almost became your generation’s name.
Remember films such as Slacker (1990), Reality Bites (1994), Clerks (1994), Suburbia (1996), and Sudden Manhattan (1996)? All films depicting Xers (aka Slackers) as jaded, unambitious losers, whiling away their days, doing nothing much, nor wanting to.
Now, you might say that your generation isn’t defined by Hollywood stereotypes. But that goes for all generations.
The GenX slacker thing lasted for like 3 years. Then in the mid 90s the internet revolution quickly put and end to that nonsense when every day you’d read about a 27 year old newly minted .com millioniare.
@Mr Landlord
“The GenX slacker thing lasted for like 3 years. ”
Nope. It persisted even until today. ‘Slackers’ and ‘why try harder’ are still what the Gen-Xers are known for even today. Its even been parodied in movies multiple times since then.
“every day you’d read about a 27 year old newly minted .com millioniare.”
Gen-X didn’t earn or get credit as .com millionaires then and when the .com bubble popped nearly everyone who did become millionaires became broke and got laughed at anyways.
Your brain is friggin’ broken on this subject dude.
Generally speaking any prediction over what will happen 20 years from now is useless. Go find some economic predictions from the 1980 and 90s. They’re entertaining to say the least.
Boomers are in their late 50s to early 70s. Even if this trend does happen, it’s not happening any time soon. One thing this doesn’t take into account is people live much longer now. I know several peeps in their mid 80s who are perfectly healthy and could go another 10-20 years easy. I have an uncle in law (if that’s the right term for my wife’s uncle) who is 85, plays golf every day and travels the world on a regular basis. This guy’s not heading to a nursing home any time soon. And neither are boomers 10-30 years younger than him.
If history is any guide we may just be slowly approaching the plateau soon with this next phase in the housing/economic cycle. Maybe Mr. Market will send a signal soon? I think a percentage of seniors with no siblings will consider staying at home and have nurses check them on occasion. Having that freedom up to the point where you can’t do anymore might be more appealing for some. However, it will probably depend on a lot of variables. Money, location, support groups, etc.. Will be interesting how it all unfolds.
I may have a free house by 2040, in the mean time I’m paying rent!
My siblings and I are fighting like mad to keep our elderly mother safe and well-cared-for without having to sell her paid-off So Cal house! Lots of younger folks are going to run into this dilemma– that house isn’t yours yet! Elder care is obscenely expensive.
All this talk about how millions of Boomers are going to be wheeled into nursing homes and everyone will be going broke paying for medical bills is hogwash. I recently inherited a house in southern California from my parents that died in the house. Both my parents were mobile and self-sufficient until the final 6 months of life. At this point we found ways to make sure they were taken care of and we preserved the wealth in the family. They did not want to leave the house and never had to.
My brother never talked to them in 20 years but acted like the house was his. He inherited nothing. Now he doesn’t talk to me.. ask me if I give a sh*t.
It depends.
My Silent Generation mom passed away in her home of 40 years a few years ago. Close to her friends and neighbors. She wanted it that way though some of her friends were moving into retirement communities which were more like Cruise Ships than a home. It was their money and they cashed out and sold their house to some lucky Millennial to afford it. My Depression Generation grandmother lived in her home for over 60 years and passed away there.
One of my mom’s friend had a debilitating stroke 10 years ago and is still alive in a retirement community. Modern medicine can keep you alive for decades as long as you can pay someone to spoon feed you and change your diapers. I plan on going quickly and take up parachuting before that point. If I can’t remember to pull the cord, it will be better for me in the long run.
Some silent generation friends moved to retirement communities and assisted living. They are more like cruise ships with concerts, activities and excursions. It is their 8K/month that is paying for it now. I don’t know what happens when the money runs out. Is it up to the Boomer kids to provide decades of spoon feeding and diaper changing while they are kept alive by modern technology?
The availability of long term care is much better now than for the Depression Era generation. The question is, what will happen to the Silent Generation and Early Boomers when their Boomer, GenX, and early Millennial children have to pay the bills for the new wonderful technology that allows someone to live as a near-vegetable for decades?
So what your saying is that I can make money in retirement homes?
The boomers made babies and babies want those homes. Babies can care for boomers.
Doc:
I’ve been reading and responding(occasionally) to your posts–moved from LA to Bend, OR., and now moving to PA to prepare for possibly the final chapter..I will be 80 soon. We have looked at CCRC’s which are Continuing Care Retirement Communities..what a joke! For $300K-$700K(or more) you can entire these places that will give you a small house or apartment for 5 times cost of what it is worth..or you can go to a 55+ community, where you buy a house that, for the most part, looks just like the one you 200 neighbors have, get you lawn mowed, and snow plowed, enjoy a pool, clubhouse and gym, for only about twice what it should cost–another joke. Some 55+ communities are OK. We are opting to move to a tax friendly state(PA), where there are plenty of things to do(it is also familiar to us), and use in-home services, when necessary. We also pull out our $500K equity to go with our $1M in IRA’s, and plan to spend (almost) it all!!
The well known investor Bruce Norris here in SoCal is organizing junkets of investors to take their money and invest in Central Florida – home of one of the largest migrations of retirees out of their cold weather domiciles Not just Central Florida, but locations where investors can buy SFH and condos near medical centers where all the boomers will eventually end up in the last years of frequent trips to doctors and therapists.
Perhaps Arizona could also qualify – the key here is near medical centers.
Good post!
In my neighborhood in Woodland Hills, people are using their houses for rehab patients, renting out each room, and the numbers of houses doing this growing and growing.
I believe the Reverse Mortgage scam has MOSTLY, though not completely, run its course, and we Baby Boomers have seen enough damage done our own Silent Gen parents by this outrageous scam, that we won’t fall so easily ourselves.
But the senior housing scam is just getting going. I’m a Boomer, and I am working on alternative arrangements in case I live long enough to require care. ALL senior housing is a ripoff, whether it’s a senior apartment complex (no care) assisted living where you must be able to do your own chores and perform all the functions of daily living, but there’s staff to check on you; and then, skilled care- which is a nursing home.
My take is if you do not need skilled care, as with a nursing home, then you don’t need “assisted living” either, or at least not beyond what you can get in a good rental or condo apt complex. Remember, you have to be able to basically take care of yourself in assisted living centers and most other senior housing. These places are so exorbitantly expensive, that you are much better off financially getting an ordinary rental or condo, and contracting for what extra help you need, such as a part time housekeeper, or a nurse to visit a couple of times a week.
Whatever you do, don’t be tempted to reverse mortgage your house. I’ve met two extremely elderly people who did this, who found themselves put out of their houses at age 88 or so, all because they thought they could have their cake and eat it, too. We are encouraged to think that way, to induce us to borrow ourselves into penury. If you’re going to take the money out of your house, just sell the damn thing and downsize- don’t sit there and pretend you can live the same way you could 20 years ago, on half or less the income you made in your working years.
Another excellent post!
Laura – The issue of how to deal with the expenses of getting older is certainly worth a conversation. However, some of your comments regarding Rev Mortgages needs clarification because the homeowner is never put out of their home due to a reverse mortgage. However, what is IMPORTANT that the homeowner keep in mind is that their Rev Mortgage does NOT pay their taxes or insurance as their prior mortgage payment may have done for them. They must pay those fees themselves. It is always important for the senior person to inform a family member of this so that these expenses are not forgotten. There is no impound account on Rev Mortgages like there are regular first mortgages. They do provide a solution for many people to earn a tax free monthly income or a method to get their hands on a large lump sum if they choose. Lastly, if we experience another housing crash or the reverse mortgage surpasses the value of the home, the outstanding debt is reduced to 95% of the value of the home so that there’s always some equity remaining in the home. Rev mortgages are not for everyone but that does not mean that they are not for anyone.
Agreed. I think Laura is making a gross generalization. Reverse mortgages can be a viable option for some people. Just like any financial decision one must understand the positives and negatives before signing on the line. I am not advocating for or against reverse mortgages, but I know people for whom this was their best option of staying in their home.
I have a millennial at home and a parent in a retirement home, so I have some thoughts to share about this month’s topic.
Millennials- A few years ago I wanted my millennial to move out of my home, and I was going to provide the 20% down payment to help him get started, but lately the wife and I have been traveling about 3 months a year, so it is better to have him take care of the house and manage the rentals. He has a job and is responsible, it works for us.
Parent- I found when looking at retirement homes, the best deal was one that was not “assisted living”. It was the “assistance” part along with the nurse on duty, that made it expensive. My mom, only 95, lives in a retirement home that provides meals and transportation only, it is an old college dorm, surrounded by fraternities and sororities in a student ghetto next to a major university. She loves it and it is very affordable. As long as you can manage your own affairs and don’t need some staff member checking up on you, this is the way to go.
Boomers aren’t going to age out like their parents, the most selfish generation in history will take sleeping pills and put plastic bags over their heads. In the end their only positive contribution to society will be vaulted ceilings and skylights in tract homes. Maybe premium coffee too.
Same old story. Red hot spring housing market Record high prices and record low inventory. Plus, Trump wins in November meaning more boom times ahead. Renters, tell me how that works out for you.
I agree, there is an incredible amount of inventory on the market and much, much more to come. Just obvious that sales and prices fall accordingly.
Most houses sit for 6-8month and end up not selling. The market hit the breaks and came to a full stop.
Boomers need to start paying their fair share. They barely pay any property taxes.
80 degrees at the beach today. I’m loving it.
Much better at 72 today in Denver. But shhhh, don’t tell anybody.
I have a couple friends in Denver. I like to visit. But don’t worry, I won’t tell anyone.. it’s snowing the next couple days with a low of 4 degrees on Tuesday, no thanks! I’m still wearing shorts and a light sweater today even though it got a little “cold”.
The article says 27.4% of the housing will hit the market over the next 20 years. Lets do some math. 27.4%/20 years = 1.4%. So, on average, each year, 1.4% of the homes will hit the market. Big deal .. that is 1.5 homes out of 100 hit the market, So what?
It Already Popped- Salt Lake City, UT Housing Prices Crater 11% YOY As One SLC Broker Whined, “Even Us Brokers Are Losing Our Shirtsâ€
https://www.zillow.com/salt-lake-city-ut-84124/home-values/
*Select price from dropdown menu on first chart
As a noted economist stated, “A housing recovery is falling prices to dramatically lower and more affordable levels by definition.â€
WHAT are you talking about?
Your link shows that prices are UP 3.8% YOY.
And WHERE in your link is anyone quoted as saying ““Even Us Brokers Are Losing Our Shirtsâ€?
Nobody is “whining.” Nothing is “cratering.” At least not in your linked page.
After reading the comments here, it’s hard to believe that people have formed this preconceived notion that Millenials are whiny, entitled, little sh*ts. I just don’t know where that came from.
Your best asset is your health.
Completely agree, but the sheeple never listen. They eat crap and go work their 60+hour/week jobs, think they’re making money hand over fist and maxing out their 401k only to die of a coronary before they can cash out. The government knows this, AARP knows this…and I love it. Let the greedy people neglect their health and die early. Can’t wait for another stock market crash in this new roaring 20s and watch all the 401ks go POOF.
Self-employed millennial here with approx. $500,000 in cash. Never had a job licking a boss’s asshole. Waiting on the sidelines for all the NPC boomers and gen x to die. Oh, fuck millennialls too. Can’t wait til there’s blood in these streets and I can buy some boomer’s crap shack for pennies on the dollar while they’re gasping into their oxygen machine and crapping their Depends.
Life’s a bitch and then ya die. Karma’s gonna hit these greedy assholes hard.
Can’t wait. My tongue is primed to lick all the tears and buy all the property hehehe.
Wow, someone can’t get pu$$y
My Boomer Wife is starting to talk about leaving CA. Since I have a job here, that is for the future. I could retire now, but I like the job and like the money. I don’t like the commute but it seems to be getting better as the work on the freeway is getting finished. I could take the train and Uber/Lyft to my job; 3 miles to a station from home and from work. My Millennial Daughter has a bigger, nicer house than I do. But she has 3 kids and they will all need houses. If they leave CA, we’ll probably follow. But they are making too much money here and owe very little on their house at a very low interest rate.
My Dad worked until he was 74. I am in much better health than he was. And I am still in my 60s. My Wife doesn’t need care yet, and I could retire and help her but it’s cheaper to hire help. I do think about my Grandchildren, and the oldest might need a house in 10-15 years or so. If Trump is re-elected or if the Democrats elect a crooked politician like Biden (he just wants to provide for his very large family), we’ll probably be OK. A Soviet apologist like Sanders is scary.
I don’t run to a Realtor if non-Anglo people buy or rent on my block, and those Hispanics have to be doing OK to afford it here. Income and social class are the most important factors in a neighborhood that isn’t a slum. Slums do segregate by gang affiliation anyway.
It Already Popped- A report from the Bakersfield Californian. “A partially built housing development off Highway 178 has become the focus of a police inquiry after contractors working on the project went unpaid and one of the development partners sued another alleging misappropriation of millions of dollars. Bakersfield Police Department Sgt. Nathan McCauley said the agency is investigating locally based Tarina Homes Inc. for ‘possible embezzlement’ after a substantial sum appears to have gone missing from corporate accounts.â€
“County records show the project entered foreclosure in December after Tarina missed a half million-dollar mortgage payment due Oct. 25. That was shortly after a number of local construction companies filed liens claiming they were owed hundreds of thousands of dollars for work and materials, records show. Shamrock Hills homeowners Fidel and Noemi Orozco said they love the home they and their three children moved into Sept. 1 on Turning Leaf Lane. But since noticing a gaping hole under one corner of their home, as well as a large depression on their front lawn, they said they have been unable to get anyone connected to the project to address the situation. Noemi said Tarina can’t be reached and the property’s original landscaper has refused to fix the problems because the company wasn’t fully paid for its work.â€
“‘It’s frustrating,’ she said. ‘We don’t know what to do about it and who to contact about it to be heard.’â€
A local developer hired by the project’s lender in recent months to complete work on Shamrock Hills said he has tried to help homeowners there ‘because it’s the right thing to do.’ But he said he has no legal responsibility to make repairs and that their best recourse is to reach out to whichever contractor did the work. ‘Tarina’s not going to be back there to help them,’ Jeremy Willer said. ‘There’s nothing left in the company.’â€
“Tarina’s former offices at 4560 California Ave. appear to have been abandoned. Neither of the primary owners, Chris Johnston and James McKay, responded to requests for comment.â€
The Daily Republic in California. “Q: I went to a wealth seminar that, in part, talked about how to protect your property from foreclosure. One of the things the speaker stressed was the need to file a homestead on your property. They said you can stop a foreclosure by filing a homestead on your house. I’m currently several months behind in my house payments and I want to try to stop the foreclosure and keep my house, so I need to file my homestead right away. Is this something I need a lawyer for?â€
A: I hope you didn’t pay a lot of money for this seminar. If you paid anything, you got ripped off. Almost all of the information in your email is wrong, at least in California. There’s no magic process that lets you fail to pay your mortgage and still keep your house, at least not in California. But that doesn’t seem to stop people from charging admission to seminars that sell little more than false hope.â€
I guess PAYING YOUR MORTGAGE wasnt discussed at the how to protect your property ??
Sheep, lol
I seem to recall they changed the homestead law a long time ago here in CA and you don’t need to file it anymore if you occupy the property. Besides, that only applies to debt that is unsecured by the property. Very good post about RE Seminar scams.
It Already Popped- San Jose, CA Housing Prices Crater 20% YOY As Bay Area Tech Layoffs Accelerate
https://www.zillow.com/san-jose-ca-95126/home-values/
*Select price from dropdown menu on first chart
As one economist noted, “A house is a rapidly depreciating asset that empties your wallet every day it owns you.â€
Your link says prices down 8.2% YOY, not 20%.
It Already Popped- El Dorado Hills, CA Housing Prices Crater 13% YOY As Sacramento Area Rental Rates Tank On Skyrocketing Vacancy Rate
https://www.zillow.com/el-dorado-hills-ca-95762/home-values/
https://snag.gy/m5EzRB.jpg
As a leading economist advises, “Mortgage debt is the most toxic and damaging debt of all. Avoid it at all costs.â€
Your link says prices UP 1.7% YOY, not down 13%.
Link states 1.3% positive appreciation forecast for next year. Thanks for posting this good news for El Dorado HIlls residents.
It Already Popped- Seattle, WA Housing Prices Crater 17% YOY As Amazon And Microsoft Layoffs Clobber Homeowners
https://www.zillow.com/seattle-wa-98102/home-values/
https://snag.gy/m5EzRB.jpg
As a noted economist said, “I can $50k for my run down Chevy truck but where is the buyer at that price? So it is with all depreciating assets like houses and cars.â€
Your link says prices down 4.1% YOY, not 17%.
Link states 2.8 percent positive appreciation outlook over the next year. Thanks for posting this optimistic news for Seattle.
Something wicked this way comes (Fed begins QE4)
https://www.forbes.com/sites/johnmauldin/2020/01/02/the-fed-has-quietly-started-qe4/#4ac6086b3768
yours truly,
QE Abyss
Looks like everyone is waiting for boomers to die off like I said. Boomers minds are so warped…guys in their 80s are playing golf everyday, amazing, as if that’s going to last for another 10 or 20 years…more like 5 maybe and at that age, as we all know time goes faster the older we get…I’m sure at 80, 5 years goes by very quickly. Lastly the entitled millennials with their 9$ lattes lol. Millennials are the most in debt generation ever in history of the US, with low paying jobs, so low they can’t move out, or pay off their debt, or pay rent, or buy a house, or afford a $9 latte at the local coffee shop all the 50 year old yuppies hang out at, sipping their expensive latte trying to meet young girls. Millennials work, they just aren’t paid a wage that reflects the expenses of today’s society boomers inflated. Greed will ruin the human civilization that is now 1 global civilization, we’re on a floating island in space, we’ll go out like every civilization before us, like Easter island for example….if your neighbors house was on fire would you help put it out? Even if you don’t like your neighbors, at least help so your house doesn’t also get on fire. Meanwhile while 50 million animals have been killed cause all of Australia is on fire and you can see the smoke from space while the world sits back and goes…jeez tuff luck Australia, sorry can’t help you….yeah cause what happens to your neighbors has no affect on you. Trump assassinated someone yet they can’t tell us why other than he had big plans for action.
Hubert, sweetie, I think that your mind is the one that’s warped. FYI, Baby Boom gen people are nowhere near 80. We are between the ages of 55 and 74, with most of us being in our 60s.
Yes, people in the 80s- our parents’ gen, the Silent Generation, DO play golf as much as they’re able. Most, of course, cannot, because they’re dead- the herd really starts to thin quickly over age 80. I just wish there were more of them- mainly, I wish my mom, who would be 86 now, were still out horse-back riding.
You’ll wish YOUR parents were, too, when the time comes.
@laura
dads dead, mom abandoned me in my teens. Im one of the few millennials that doesnt have the luxury of living with thier parents. This made things quite difficult for me, given the low paying wages, high cost of living, high rents, student loan debt.
Also it appears everyone has twisted my words. I know boomers arent in their 80s. I was referring to the statement of a boomer on here, who said that people in their 80s are active healthy and doing activities such as golf etc…..while that may be true, and all fine and dandy…..dont kid yourself that someone in their 80s does not have long to live. You guys talk as if these people in their 80s are going to live another 20 years, sipping margaritas and playing golf or what not.
Hubert, I’m sorry to hear that you lost your parents in your teens, and especially sorry to hear your mom abandoned you. That is just tragic, and something you never get over your whole life.
I personally intend to live as long as I can really LIVE, and I have no intention of burning down my money in a nursing home, being kept alive with “heroic” efforts. That’s not living. I’m prepared to get pre-emptive about it and end it myself, if I see that all that lies before me is pain and dependency. I want my young heirs to have my money, what little there is, and feel that we expend too much resources keeping elders alive who would be better off just being allowed to slip away, and worse, too many people are expending almost as much resources in the search for immortality, a vain and destructive quest as it gets. You’d really think we’d know better by now.
However, some few people really can, and do, lead active, productive lives well into their 90s- look at Jimmy Carter, who has done his best life’s work in the past 20 years.
Boomers minds are so warped…guys in their 80s are playing golf everyday, amazing, …
Guys in their 80s are not Boomers. They’re Silent Generation. The oldest Boomers will be turning 74 this year.
Greed will ruin the human civilization that is now 1 global civilization … if your neighbors house was on fire would you help put it out?
The elephant in the room that people are afraid to blame is … diversity.
People help their own. Small, homogeneous communities with shared values help each other. Those insular Ultra-Orthodox Jews. The Mormons. The Amish. Those small, ethnic Catholic neighborhoods of old. Small Christian rural towns.
People are more likely to help their own, because they know they’re more likely to benefit from their own. This is why Scandinavian socialism worked. Most people didn’t abuse the system, and all felt they had a stake in it. The “New Swedes” — Muslim and African migrants — have no love for their “fellow” Swedes, no sense of solidarity. They are, and feel, like outsiders who came to take.
As we become increasingly diverse, we become more atomized. More likely to feel like a stranger among strangers, with no stake in others’ welfare, because we sense that they have no interest in our welfare.
Of course, the powers that be will want to channel your hate, and divert your attention, to other generations. Generational warfare benefits the powers that be.
Shared values are way more important than ethnicity. The Catholic ethnic neighborhoods also had ethnic gangs that worked at cross purposes to what the Church taught. But those gangs have lost a lot of power where they aren’t fed by new arrivals looking for easy money. The real cause of our moral crisis is the loss of moral authority of the churches, which is encouraged by Marxist Socialists. There are many churches out there that are ethnically diverse but united in faith.
Excellent comment!….I hope that the younger once will learn something from you after they’ve been brainwashed throughout their school years to fall for the globalist agenda – “divide and conquer”.
Joe R: Shared values are way more important than ethnicity.
It’s important. I don’t know that it’s “way more” important.
Conservatives like Dennis Prager like to emphasize the whole “values” thing, but it’s all pretty vague. Ethnic solidarity is bound up in one’s values.
Conservative Mexicans (and Indians) are more likely to support easier immigration for their own into the U.S. Conservative Jews want continued U.S. support for Israel. Etc. They’ll find some “conservative values” based argument for their positions, but really, it’s ethnic solidarity.
Most people choose positions that are best for themselves, then construct principles to support their positions.
This is the wisdom that comes with age. When I was younger, I believes in the whole “ideals and principles” sort of thing. As I got older, I realized that almost nobody follows principles. Rather, they follow their self-interest — while arguing that it’s based on principle.
I can think of another way to alleviate the affordable housing crisis, deport just half the illegal immigrants.
In California I can almost guaranty there’s 2 million illegal immigrants. So 1 million, using a ratio of 10 to a dwelling equals 100k dwellings that would be available if the federal govenerment would just do half of its job regarding immigration.
It wouldn’t cost 1300 a month for a 1 bedroom apt if there were 100k other options.
But if you do that who will mow my lawn and trim my trees?
Get your lazy, millennial son to mow it. Illegals are simply doing jobs which the average person is too lazy to do themselves. if they were gone no one would notice the difference and the average person would lose a little weight by exercising.
I somehow don’t think that deporting your “illegals” will help, mainly because I don’t believe that there are anything like as many of those as you believe, nor that they are the ones driving house prices, as most of them are agricultural workers who are far away from Los Angeles and certainly not looking for a place to live there.
Your problem is too many really rich people. Most of the people leaving CA are people who make less than $50K a year, while most who are entering have incomes of $150K or more. And, yes, you do have immigrants, but they are mostly moneyed Asians to whom insane CA prices look cheap – look at Hong Kong prices!- and who are ready to pay cash without even bargaining the prices.
Back in the early 90″s I worked for a company and they did an audit because one of the illegals used a different ss# to apply for health ins other than the one he had on his application. It turned out something like 54 out of the 70 something people of our yard were illegal aliens. These were not low wage jobs, I was making 16+ per hour and most of the other employees made more because they had been there longer and their cousin was their supervisor, also illegal it turned out. Most were buying homes, 2 were buying homes in a local college town known for very high priced homes and yes they were crammed in there 10-12 per house. This was about 1993.
A couple years later I heard a similar story happening in Sacramento on a local utility contract, the utility reps called the immigration dept and when they showed up at the yard they all ran throughout the neighborhood…about 240 people running through peoples backyards and on top of their roofs trying to escape is what I was told.
The contractor tried to sue and lost.
So I can assure you your interpretation of the reality of the situation here in Ca is completely wrong.
@russel
as awesome as that would be, it will never happen, why you ask? Because our government wants illegals here, illegally, to be exploited for cheap labor. Our entire farming industry is based off this, and our farming industry feeds the US.
we could actually enforce the law and kick out illegals, but kicking out illegals has been made illegal due to racial profiling or what not. Its all just smoke and mirrors to keep the people fighting with each other. white vs black, or in this case white vs mexican. democrat vs republic. etc. all smoke and mirrors……..voting is bullshit…….its just there to give the people the illusion they have a choice. You dont. just vote harder next time.
youtube george carlin: you have owners
https://www.youtube.com/watch?v=H-PSCqhkWhg
It Already Popped- El Dorado Hills, CA Housing Prices Crater 13% YOY As Sacramento Area Rental Rates Tank On Skyrocketing Vacancy Rate
https://www.zillow.com/el-dorado-hills-ca-95762/home-values/
https://snag.gy/m5EzRB.jpg
As a noted economist advises, “If you have to borrow for 15 or 30 years, it’s not affordable nor can you afford it.â€
Westborough, MA Housing Prices Crater 10% YOY As Boston Housing Gamblers Stamp Their Feet
https://www.movoto.com/westborough-ma/market-trends/
A noted economist said, “A housing recovery is falling prices to dramatically lower and more affordable levels by definition.â€
Coeur d’Alene, ID Housing Prices Crater 16% YOY As Idaho Housing Market Tanks
https://www.zillow.com/coeur-dalene-id-83814/home-values/
*Select price from dropdown menu on first chart
As a noted economist stated, “Nothing accelerates the economy like falling prices to dramatically lower and more affordable levels.â€
Fort Myers, FL Housing Prices Crater 11% YOY As Gulf Coast Florida Floods With New, Empty And Defaulted Houses
https://www.zillow.com/fort-myers-fl-33905/home-values/
*Select price from dropdown menu on first chart
As a noted economist stated, “You’d have to have rocks in your head to buy a house in the last 15 years.â€
Fixed it for you…
It
Already Popped– El Dorado Hills, CA Housing Prices UP 1.7% YOY.Coeur d’Alene, ID Housing Prices
CraterUP 8.7% YOY.Fort Myers, FL Housing Prices
CraterUP 2% YOY.Why do you keep posting links that refute your claims?
When this housing bubble pops we’re going to see such joblessness, poverty and hopelessness. Say goodbye to all the consumer confidence, construction jobs, real estate jobs, banker jobs and all the other jobs that hinge on a phony housing bubble. When this bubble pops we’ll look back on the Great Recession like it was the roaring 20s.
I will think twice before buying any more property in semi-rural and rural areas of CA. It’s getting very difficult to find homeowners insurance at a reasonable cost after all the fires. After my current insurance company non-renewed me I’m forced to pay significantly more for less coverage after being turned down by numerous companies. Last resort would be the FAIR plan.
“son of a landlord” – Thank you for correcting the posts from the bot with a handle
of JamesJim. Bots can search out irrelevant pre-programmed text strings, but
can not read nor decipher meanings. Keep translating into logical terms.
JamesJim is a bot? Could be. That explains why he spams, but never responds to comments.
Gasp! Do you mean every time we respond to JimJim, the attention seeking monkey bot that can’t read thinks we like what he is posting and posts more???
That could explain his identical posts here, on The Housing Bubble Blog, and on ZeroHedge. WolfStreet screens out his spammy posts.
It Already Popped-
https://www.realtor.com/realestateandhomes-detail/14105-Biscayne-Pl_Poway_CA_92064_M24805-10480?view=qv
And I posted this detail:
01/30/2020 Sold $4,300,000 $271
01/21/2020 Relisted $4,999,000 $315
10/16/2019 Price Changed $4,999,000 $315
10/16/2019 Price Changed $4,999,000 $315
08/21/2019 Listed $5,999,000 $378
08/20/2019 Listed $5,999,000 $378
12/04/2018 Listed $6,950,000 $438
10/03/2018 Relisted $6,950,000 $438
02/10/2018 Price Changed $6,950,000 $438
11/29/2017 Listed $7,950,000 $501
12/12/2016 Listed $11,500,000 $725
12/08/2016 Listed $11,500,000 $725
06/28/2013 Sold $9,075,000 $572
01/21/2013 Listed $12,000,000 $757
09/08/2011 Price Changed $12,900,000 $814
01/04/2010 Relisted $14,995,000 $946
09/28/2009 Listed $14,995,000 $946
06/28/2013 Sold $9,075,000 $572
01/30/2020 Sold $4,300,000 $271
The MSM isn’t going to tell you the bubble has popped, but it has.
It Already Popped-Takoma Park MD Housing Prices Crater 27% YOY As Northern Virginia/Washington DC Market Turns Radioactive
https://www.movoto.com/takoma-park-md/market-trends/
As a noted economist stated, “You’d have to have rocks in your head to buy a house in the last 15 years.â€
It Already Popped-Arcadia, CA Housing Prices Crater 14% YOY As Los Angeles Housing Market Swirls The Bowl
https://www.zillow.com/arcadia-ca/home-values/
https://snag.gy/m5EzRB.jpg
Fixed it for you:
It
Already Popped-Arcadia, CA Housing PricesCraterUP 2.7%can someone please explain to me why people think millenials are lazy or dont work or what not?
as the most underpaid, overworked, and in debt generation ever, they work, but have nothing to show for it. They treat water, but cannot get head…….treading water is more tiring than swimming actually.
I don’t think Millennials are lazy. I think Millennials are EXACTLY like Zoomers, and Xers, and Boomers, and Silent, and Greatest generations.
EVERY generation has migrant workers, and prison gangs, and blue collar labor, and military heroes, and homeless druggies, and white collar professionals, and billionaires, etc. Generational divides are a silly marketing gimmick, and mean nothing.
Really, what do a wealthy Harvard graduate and a Crip gangsta, of the same generation, have in common?
But do YOU believe that? I’m guessing you think Milli stereotypes are unfair, but stereotypes about other generations are dead on.
@hubert
There has been a concerted effort, originally by all media starting in the mid-late 2000’s but these last few years mostly played up by Right Wing media, to sell books/magazines to punch down on younger generations and blame them for almost anything.
There are real generational issues with wealth distribution but for the most part the generation wars are some ginned up BS.
I remember first seeing the anti-Millennial rhetoric around 2008 when I was about to graduate from college. At the time, we Millennials were pretty naive and untested, and I remember taking the criticism from my “elders and betters†at face value… I wanted to prove I wasn’t one of THOSE terrible people.
Then the financial crash hit, and we were all struggling. If we had been “spoiled†and “entitled†by our 90s childhoods, we sure had to snap out of it and grow up. However, the Millennial-bashing just continued, as if the Great Recession, unpaid internships, the college tuition bubble, and the housing crisis did not exist. That is why anti-Boomer rhetoric has finally reached such a fever pitch. Younger people have been listening to the “entitled snowflake†tirades for over ten years now, and we are sick of it.
Alicia: … That is why anti-Boomer rhetoric has finally reached such a fever pitch. Younger people have been listening to the “entitled snowflake†tirades for over ten years now, and we are sick of it.
Ten years? Boomer have been attacked for over 50 years.
Back in the late 1960s, they were attacked for being lazy, draft-dodging hippies (even though some of us Boomers were still kids).
Then The Big Chill (1983) and TV’s Thirtysomething unleashed a New Wave of anti-Boomer attacks, portraying Boomers as greedy, whiny, hypocritical yuppies who betrayed their 1960s ideals.
Then in the 1990s, while the Xers were characterized as slackers, Boomers were mocked for being aging hippies, no longer relevant or “aware,” as compared to the more savvy Xers.
So I don’t know that anti-Boomer rhetoric has reached “fever pitch.” It began even before many Boomers entered high school.
I think Boomers are the only generation that’s been mocked continuously since they came of age. Xers were mocked as slackers in the 1990s, then they faded from public consciousness. I expect that in another decade, Zoomers will eclipse Millennials as the hot new thing, for good and bad. But attacking Boomers will remain in vogue.
every other country in the world enforces their border and immigration laws, but not us!! why, because its racist!! and why is it racist??? because of the damn democrats or liberals or what not you say!! if that was your answer, then uncle sam has you by the balls, they want you to think that. Keep us busy fighting with each other instead of against our corrupt government. Its the democrat/liberals fault all the illegals are here!! not our corrupt government that wants them here to exploit them for cheap labor!! of course not! The building of the wall at the mexican border never happened? why? cause it was never going to! it was just smoke and mirrors to again keep us busy fighting with each other. Trump impeachment was again, smoke and mirrors, to give us the illusion we have a choice…we do not…only owners.
So much truth to your statement that will be 100% ignored.
Oh well.
Can we please get another JamesJim link that says an area declined in price but the link says the are is up 5% last year and foretasted to be up 4% this year?
Hubert,
Very good points but it is not being ignored because it is racist. it is being ignored because of our current fascist government. They kowtow to big Ag, big construction, etc. Racism is a perceived excuse that the left uses to blame the Republicans. The Repbublicans even when in a majority cannot limit immigration because they don’t want to. Look a the Wall when Trump had a complete majority both in the House and Senate. Nobody in government will limit immigration.
Vineyards need their cheap labor to pick grapes. Other Ag needs cheap labor to pick fruits and vegetables. Construction needs cheap labor to frame and drywall Trump hires illegal aliens as landscapers and housecleaning. The House and Senate need cheap labor to garden and nanny. When our president and the entire government is using illegal aliens as cheap labor, why does anyone expect any change?
We need to vote for Bernie or Warren. Both are too old to need nannies.
It Already Popped- Laguna Hills, CA Housing Prices Crater 10% YOY As Orange County Housing Market Turns Radioactive
https://www.zillow.com/laguna-hills-ca/home-values/
*Select price from dropdown menu on first chart
As a noted economist stated, “If you have to borrow for 15 or 30 years, you can’t afford it nor is it affordable.â€
Falls Church, VA Housing Prices Crater 13% YOY On Surging Arlington County Unemployment And Foreclosures
https://www.zillow.com/falls-church-va-22046/home-values/
A Washington area broker disclosed, “prices and rental rates are cratering and there is nothing anyone can do about it.â€
Fixed it for you:
It
Already Popped– Laguna Hills, CA Housing PricesCraterUNCHANGED YOYFalls Church, VA Housing Prices
CraterUP 5% YOYIt Already Popped- Cupertino, CA Housing Prices Crater 22% YOY As Bay Area Housing Hens Weep
https://www.zillow.com/cupertino-ca/home-values/
*Selet price from dropdown menu on first chart
As a noted economist said, “I can $50k for my run down Chevy truck but where is the buyer at that price? So it is with all depreciating assets like houses and cars.â€
Fixed it for you:
It
Already Popped– Cupertino, CA Housing PricesCrater 22%dip 6.5% YOYTwo interesting articles in the OC Register RE Section today. One was on the current status of SB50 (DOA apparently). I looked up an interactive map that shows the areas that would have been opened to high rise development under this act:
http://upzoning.berkeley.edu/station_neighborhoods.html
My neighborhood is outside the big circles on the map, but at least one historic district fairly near me is inside which would pit historic preservationists vs developers and high density advocates.
The other article is on the demise of malls. The action in mall investment is now in consolidation and re-purposing. Hey, maybe some malls should be converted into high density housing and service businesses (e.g. cafes, supper clubs, personal care businesses, etc.). This way, there’s plenty of parking and you don’t have to destroy Victorians and Craftsman Bungalows just because they’re a couple of blocks from an old RR depot.
It Already Popped- Celebration FL Housing Prices Crater 16% YOY As Sellers Flood Orlando Housing Market
https://www.zillow.com/celebration-fl/home-values/
*Select price from dropdown menu on first chart
As a noted economist said, “If you paid more than $50 a square foot for a house, you got ripped off.â€
Your Zillow link actually says …
It
Already Popped– Celebration FL Housing PricesCraterUP 1.5% YOYIt Already Popped- San Diego, CA Housing Prices Crater 10% YOY On Surging Unemployment and Foreclosures
https://www.zillow.com/san-diego-ca-92105/home-values/
*Select MEDIUM PRICE from dropdown menu on first chart (for the clueless sheepe)
As a noted economist said, “I can $50k for my run down Chevy truck but where is the buyer at that price? So it is with all depreciating assets like houses and cars.â€
Your Zillow link actually says …
It
Already Popped– San Diego, CA Housing PricesCraterUP 2.6% YOYIt Already Popped- Reno, NV Housing Prices Crater 11% YOY As One Reno Broker Bemoaned, “Housing Prices Are Cratering.â€
https://www.zillow.com/reno-nv-89502/home-values/
*Select Median List Price from dropdown menu on first chart. For the slow, again (MEDIAN LIST PRICE) yah Lying, Dog Face Pony Soldier!
As a noted economist said, As a noted economist stated, “You’d have to have rocks in your head to buy a house in the last 15 years.â€
Your Zillow link actually says …
It
Already Popped– Reno, NV Housing PricesCraterUP 4.2% YOYIt Already Popped- Chantilly, VA Housing Prices Crater 10% YOY As Northern Virginia Sellers Bellyache About Their Losses
https://www.movoto.com/chantilly-va/market-trends/
As a noted economist said, “If you paid more than $500 an acre, you got ripped off.â€
I won’t say a bad thing about boomers anymore. Ever again.
I inherited from a boomer. A lot. Thinking of buying property. 🙂 I have a very nice house in mind.
…but you said that you are not going to buy till price is 50-70% OFF. You also said that is not an issue of money but of price.
I don’t think that’s what he said. He’s bragging now that he inherited his property so if you’re interested, he’s got one to sell. Yeah, ok, sure Millie. Good for you.
You can’t rant about the market collapsing (because it’s not happening anytime soon) so now you just got a property for free. You also bought bitcoin for a penny- we know.
SoCalGuy,
He did say this “Thinking of buying property. 🙂 I have a very nice house in mind.”
If Mili decided to buy we might have reached the peak:-))))!!!….
You plan to buy at, what you claim, is the peak for home prices?
You renounce all your previous advice about buying high and selling low?
You now agree with “real estate cheerleaders” that “it’s always a good time to buy real estate”?
Is this our Milli? An imposter? A troll?
Okay, I think I have if figured out.
All along, the person posting as “Millennial” was a realtor. His plan was to create a fake persona, the ultimate bear. Then when he’d won the trust of all the other bears, he publicly renounces all his previous arguments.
It’s sheer brilliance. All the bears will now think, if even Milli thinks it’s time to buy, it must be!
I thought we were a team?! I’m exhausted with searching and seeing crap homes at astronomical prices and don’t blame you for giving up. Congrats on your inheritance. I’m close to throwing in the towel, too, but haven’t found anything in years that’s worth buying. May build. If I’m going to spend 1M, may as well be on a new house that I design instead of 800k on an old house that needs 200K worth of repairs/remodeling. We will see a dip, though. Buy wisely and remember how you’d spend the money if you yourself had earned it.
I have an explanation consistent with Milliennial’s known belief set:
“I inherited from a boomer. A lot.”
This could mean he inherited a lot of money, or it could mean he inherited a vacant lot. It could also be a house he inherited, but assuming its raw land, he may want to do a 1031 exchange and maintain his Prop 13 tax break (if that is possible?).
“Thinking of buying property. I have a very nice house in mind.”
If it is a house, he may have others who inherited it with him and needs to buy them out. Same with a lot. Then he does the 1031 exchange for a house.
If it is cash, he may be assuming that we are going to see runaway inflation if Trump loses and a candidate who believes in “Modern Monetary Theory” wins. (MMT has been around since the days of the Roman Empire, but now it has academics touting it.)
We’ll have to wait until he responds to be absolutely sure it’s him and he’s serious.
Joe, it is nice you mentioned the MMT. There is nothing new under the sun. Just because they use the word “Modern” it doesn’t make it new. Like you said it goes back 2000 years or even more. It is good to learn real history. If that would be taught in school, the millennials would no longer fall for socialism.
If Millenial actually bought a house I would know we are at peak.
That’s how you know… when the most bearish bear turns bullish you have hit the peak.
With his purchase I could change my name to TankinSight… finally
But we all know this is complete BS like everything else Millenial wrote a million times over and over again on this blog
Who cares what you do. Good luck.
My condolences, Millennial.
I’m sorry for your loss.
I meant your loss of of a loved one, not buying at a peak. That would be rude.
Remember just stay 10 years and you will be fine.
We are about to sign ….I’d be a homeowner in the greater San Diego area! I feel extremely grateful.
The larger floor plans have a multi gen unit which i could rent out. the builder only allows a wet bar in there. I should be able to modify this later to have a full kitchen in there. That little rental within the house (bedroom, bathroom and small living area) should absorb the property taxes and some of the PI.
…its a lot easier to pull the trigger when its not your earned money but inheritance money.
Welcome Millennial to reality
You finally reached SoCal housing market reality
It only took you almost 4 years of posting nonsense on this blog while house prices kept going up.
Before you sign, make sure the house is within a mileish of the coast. Usually, those work out much better in the long run.
Millie finally threw in the towel and realized there wasn’t going to be any sort of tank soon. I have preached here for years that your average home buyer does NOT have an unlimited time horizon. Life happens and people buy homes, this will never change. Welcome to home ownership Millie. Let the magic of time do its thing. Enjoy your home, build equity and be shielded from ever increasing rents.
Economy booming, unemployment at record low, stock market at record high, only qualified people bought homes the last decade, homeowners swimming in tons of equity, CA is short millions of homes, rents sky rocketing, etc. All this means No Tanking In Sight.
Congrats Millennial! We have a similar 1 bedroom apartment setup where my mother-in-law lives and pays rent. It works out well for everyone. If you’re planning on adding extra stuff to the kitchen area later, be sure to pull in extra circuits dedicated just for the kitchenette. Super easy to do while building, not so easy later. Between coffee makers, toasters, garbage disposals, microwaves, stoves, and refrigerators, you can pull some amperage!
I can’t believe anyone is taking Mille’s 180 seriously. Boys and girls: Millie is a performance artist. This is all an act. both the pre and post “inheritance” stuff.
The real estate market in California looks very toppy to me, but there is no sign of decline yet. How long can prices go sideways before buyers no longer have a fear of missing out? FOMO is a fragile thing to maintain when prices are obviously no longer increasing. The huge size of this top also means that there are going to be lot of sellers once the sideways plateau is broken to the downside.
It Already Popped- “It is difficult to get a man to understand something, when his salary depends on his not understanding it.â€
― Upton Sinclair,
Jonathan Lansner’s Bubble Watch column in the OC Register today is on foreclosures. The SoCal rate of court default filings was 1 out of 20 during the crash but was 1 in 333 last year. That was off 20% from the year before. He gives the foreclosure are today one bubble on his 0 to 5 bubble scale.The 4 SoCal counties in the LA metro area (LA OC SB & Riverside) made up 11% of 2009 filings in the US but 4% today. There just isn’t a lot of bad loan making out there.
Now my two cent’s worth:
On the Bloomberg comment on redlining and the housing crash. The lowest rate of foreclosures then and now is with VA loans. Minorities are over-represented among veterans, so you’d expect higher foreclosure rates if ending redlining caused the crash. This kind of bad publicity couldn’t have happened to a more deserving Democrat running for President. My order of bad news for America is Bloomberg, Sanders, Warren, Biden and then all the others. Every week another one drops out so I am stopping with a top 4.
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