There are two economic factors that will play into the real estate bottom:

1. In 2008 the leading edge of the 78 million baby boomers will be 62 yrs old and eligible for early Social Security benefits.

2. In 2010 the boomers will be 65 and eligible for full SS bennies. They will also be eligible for Medicare and the prescription drug benefit.

The Social Security ‘Trust Fund’ is empty. Mr Bush admitted that to us in a 2005 speech at the Univ of West Virginia where he said, “There is no trust fund – just IOUs.” (he was trying to sell us on the ‘privatize SS’ idea at the time)

The boomer retirement will have a huge financial impact on this country.

Remember that many boomers are counting on the equity in their homes to fund their retirement.

It is possible that another glut of houses could come on the market in 2008 / 2010 as the boomers try to retire. The boomers could be dumping houses for the whole decade.

All we can do is wait and see how everything shakes out.

I am telling my friends and family that 2009/2010 is the earliest that I will be buying anymore real estate.