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Why Baby Boomers May Bust the Housing Market
The Wall Street Journal ^
| January 16, 2008
| Lauren Baier Kim
Posted on 01/18/2008 5:08:33 PM PST by Lorianne
click here to read article
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1
posted on
01/18/2008 5:08:37 PM PST
by
Lorianne
To: Lorianne
More good news for the folks in Michigan, Ohio, and Indiana.
2
posted on
01/18/2008 5:16:53 PM PST
by
Ken522
To: Lorianne
Damn’d old boomers again, don’t blame me, I was born in ‘45.
3
posted on
01/18/2008 5:18:17 PM PST
by
Graybeard58
( Remember and pray for SSgt. Matt Maupin - MIA/POW- Iraq since 04/09/04)
To: Lorianne
yep and what will it do when they all start cashing in their 401ks.
4
posted on
01/18/2008 5:20:25 PM PST
by
CJ Wolf
To: Lorianne
The free market will take care of this. Just let it work!
5
posted on
01/18/2008 5:21:53 PM PST
by
devere
To: Lorianne
Declining housing prices will help the younger generation become home-owners.
It's the least the aging boomers can do for them while they suck up young peoples' FICA payments.
6
posted on
01/18/2008 5:22:03 PM PST
by
E. Pluribus Unum
("It takes very little to govern good people. Very little. And bad people can't be governed at all.")
To: Lorianne
The second round of boomers is just hitting college. There are as many if not more in the upcoming cohort. I dont think it will be so bad,
7
posted on
01/18/2008 5:22:25 PM PST
by
Chickensoup
(If it is not permitted, it is prohibited. Only the government can permit....)
To: Lorianne
THIS IS NEWS?? ANYONE DOING THE HOMEWORK WOULD HAVE FIGURED THIS OUT IN THE NOT TO DISTANT PAST... LIKE WHEN WE GOT THE HELL OUT OF HOME CONSTUCTION AND WENT TO FOOD... GRAIN... LOW COST PRODUCTION.
LOOK FOLKS... WE AIN’T SMART... BUT FOR GOODNESS SAKE... THE FOLKS WHO DID NOT SEE THIS COMING... TOUGH.
AND JUST FOR THE HECK OF IT... GRAIN FUEL WILL BREAK THIS AMERICA AND... WE’RE FARMERS THAT SAY SO. INFLATION??? GRAB YOU STEP-INS.
8
posted on
01/18/2008 5:23:13 PM PST
by
Bubba
(IT'S NOT WHAT YOU GATHER... IT'S WHAT YOU SPREAD.)
To: Lorianne
This kind of article makes me lose respect for the WSJ. The boomers won’t be “out of the housing market” until they go into a group home, or die. All they will be doing in the meantime is moving from one location or size of housing to another, and the “churning” of the market as all these increased transactions take place should make the realtors ecstatically happy.
9
posted on
01/18/2008 5:24:41 PM PST
by
Wonder Warthog
(The Hog of Steel-NRA)
To: Lorianne
But ultimately would this price softening be a good thing for young first-time buyers?Yes.
10
posted on
01/18/2008 5:24:52 PM PST
by
decimon
To: Lorianne
The report points out that the ratio of those aged 65 and older to working age (25 to 64) adults will increase by 67% between 2010 and 2030, and that when these older adults try to sell their high-priced homes to a relatively smaller and less-advantaged generation a cohort whose buying power was diminished through the housing booms price increases there will be more homes for sale. In some states namely Connecticut, Hawaii, New York, North Dakota, Pennsylvania and West Virginia the process has already begun, with sellers starting to outnumber buyers, Mr. Myers says. He contends that the East Coast, particular Maryland and states north, face a double hurdle because there arent enough young people to pick up the slack as boomers sell off and because prices are so high that many will not be able to afford these homes. In some states like New Jersey, it could be 20 years before prices recover, he says, explaining that the generational trend is one that could stretch for decades. He actually has a point here - and it is valid.
What the article does not mention is what will happen to local and State governments that have become addicted to high property tax revenues.
It is already beginning to impact some of the local townships here in New Jersey. When housing prices took off, townships re-assessed the property and hiked up property tax rates.
It is essentially paying the state "rent" to live on property you own.
In some of the more expensive McMansion communities outside Philadelphia, homeowners can expect to pay $26,000 and up for a house that is anywhere from 3,600 to 4,400 sq ft.
If the house is on one of New Jersey's lovely lakes around here, and they own a bit more land, the cost can be up to $38,000 a year and more in property taxes.
11
posted on
01/18/2008 5:26:39 PM PST
by
SkyPilot
To: Lorianne
Sweet. Cheaper Houses. Let the prices fall!!!
To: SkyPilot
“What the article does not mention is what will happen to local and State governments that have become addicted to high property tax revenues.”
Don’t worry. They will just raise the rates.
To: E. Pluribus Unum
Who sucked up the FICA payments that they have been making for 40+ years?
14
posted on
01/18/2008 5:35:49 PM PST
by
bill1952
(The right to buy weapons is the right to be free)
To: Lorianne
Not a problem. There are 60 million Mexicans lined up waiting for those houses.
15
posted on
01/18/2008 5:36:45 PM PST
by
sphinx
To: Lorianne
About to wreak havoc on the housing market are the 78 million American baby boomers who will retire, relocate, and eventually withdraw from the housing market...
So what we are actually talking about here are 78 million Americans who will be selling their homes, buying another and fixing it up to suit their wishes.
Yes, sounds like a real downturn in the real estate market alright, after one of the largest booms in American history.
16
posted on
01/18/2008 5:38:01 PM PST
by
DoughtyOne
(< fence >< sound immigration policies >< /weasles >< /RINOs >< /Reagan wannabees that are liberal >)
To: Lorianne
So if we live to long we drain the Social Security system and if we die we mess up market value of homes?
To: Lorianne; qam1
18
posted on
01/18/2008 5:38:47 PM PST
by
Incorrigible
(If I lead, follow me; If I pause, push me; If I retreat, kill me.)
To: Western Phil
I agree. When the property sells, the selling price will in most instances go up, and right along with it the properyy taxes for the next owner.
19
posted on
01/18/2008 5:39:34 PM PST
by
DoughtyOne
(< fence >< sound immigration policies >< /weasles >< /RINOs >< /Reagan wannabees that are liberal >)
To: Lorianne
If there’s downward pressure on prices, the houses will get cheaper. If you bought one of those fast-up low quality KHov east coast toothpick palaces in generic prefab neighborhoods, you deserve to be stuck with it and sell it at a loss, you overpaid middle management types!!! Enjoy the “status” while you have it, your house may not be worth sh!t soon.
20
posted on
01/18/2008 5:40:08 PM PST
by
AbeKrieger
(There is a special place in Hell for Lyndon Johnson.)
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