Reply to Mortgage rates are set to stay elevated

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]No one is talking about the people locked into 2.75% rates are *never* going to sell their homes.[/quote]

? Literally everyone is talking about this. It will take years to unwind like a decade or more as the boomers downsize and die, but even then those houses will transfer with a stepped up basis to their unbelievably wealthy kids. American class mobility is OVER.[/quote]Its not the boomers with the low interest rates. It’s the Gen-X and millennials. [/quote]

They're saying boomers will flood the housing market and interest rates will somehow lower. Can't really see that happening...no one sold during Covid and they were dying then?[/quote]

This is a silly comment. Boomers aging is a much different and larger demographic trend than the loss of life during Covid (which sadly hit people in poorer countries, where home ownership is far less common, than in wealthier counties). I'm sorry Covid didn't flood the market with cheap homes I guess? Don't be a ghoul.

The demographic shift over the next 20 years, where Boomers make decisions about what to do with their homes, will have a massive impact on both purchase and rental inventory, and thus on housing prices. Will Boomers sell and downsize to help pay for elder care? Will they buy condos to live in and rent out their paid off houses for extra income? As Boomers pass, will they pass on real estate to Gen X and Millenial kids, or will that wealth get eaten up by the high cost of retirement homes and end-of-life care? Will Gen X and Millenial buyers want to buy all the Boomer homes or will preferences about where they wish to live (which will be driven in part by trends like WFH, smaller families, and more people choosing not to have kids) and what impact will those preferences have on home prices in suburbs, small towns, urban areas, etc.?

I honestly don't have answer for any of these questions and I don't know what is going to happen, but the one thing I feel confident about is that we will see shifts in the real estate market as a direct result of the Boomer generation retiring, aging, and yes, dying. It's inevitable.[/quote]

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