“These boomers have a lot of cash and live very well. ”
My take on the boomers is that they DON’T have lots of cash
The average 401K has around $50K in it and about 1/3rd of all 401Ks have less than $35K
Many boomers are counting on the equity in their real estate for retirement – that means they must sell, refi and cashout or do some kind of reverse mortgage
The boomers cashing out of their real estate could result in another batch of must-sell (or highly motivated to sell) inventory coming on the market
Since the leading edge of the boomers is eligible for early retirement in 2008, this boomer inventory could come on the market in the same timeframe as the ARM reset inventory driving the market to a later (and lower) bottom
Or it may be the market bottoms in 2011/2012 and the boomer inventory keeps the market flat at a low level for years to come
Hard to say how the boomers will affect San Diego’s real estate market but I believe the effect will be negative not positive