It seems like only yesterday that Over 55 sub divisions were sprouting up everywhere. While most were catering to boomers who were downsizing, others were laden with high priced features, including living areas that far surpassed the square footage of the old homestead. Nothing mattered because we were selling those 50 year old homes for 'funny money' and buyers were lined up around the block with mortgage approvals in hand. That is, until the spit hit the fan.
We are seeing developments catering to the higher end of our market going belly up, or at the very least, lying dormant. The more modest homes seem to have weathered the storm, though they have had to reduce features and prices. In addition to all of that equity that went 'poof', even more of it went with sellers' who moved to warmer climates. The winters in Brockton, MA and the rest of the north and north east have worn out their charm for many of us.
History tells us that all of this excess inventory will eventually be absorbed, but it will be at the expenses of those who mistakenly thought that the unsustainable price appreciation would continue in the face of common sense. The relentless aging of my boomer generation will continue but, most of us will want to keep some of that equity for entertainment, or other purposes instead of housing.
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