[quote=sdrealtor]Softness for the rest of the year and then price strength next year. Its the way it traditionally goes.
As an aside I have just seen two examples of something I used to write about a couple years ago here that would help the higher end markets. I’m taking about the upcoming wealth transfer . . . Not saying this is going to save the market but I just saw this twice this week. The wealth transfer from our paretns generation to the baby boomers is very real and it is coming as we speak.[/quote]
Agree sdr, I know many persons in my demographic that have lost and are losing their last parent. These “boomer” friends are aged 52 to 62. I myself have lost both my parents.
Your two examples (above), however, appear to be “only children.” Most baby boomers have living siblings they will have to share an inheritance with.
Most won’t receive quite the estate you are claiming could save the mid to high-end housing market, due to having to share with siblings or the last living parent owning property in zip codes which will not bear a $700K sales price. Many of our “greatest-generation” and “depression-era” parents had their retirement funds tied up in 401K or 403(b)-type vehicles and died too young or without sufficient notice to move it all out of there while they were alive, well and eligible. Therefore, if their baby-boomer children inherit these funds and are under age 59-1/2, the funds can only be moved over to the heirs’ SSN WITHOUT WITHDRAWALS until they are age-eligible, unless they are willing to pay a 20% penalty for early withdrawal.
As a worker only four years from retirement, I would NOT want to buy an expensive property to maintain (even for cash) for my retirement years that was more house than I personally need, as I do not entertain much anymore.
I could see more well-located residential properties (mostly urban) selling to retiring boomers in the coming years but not necessarily “high-end” or for “over $1M.”
