So why has the Real Estate market slowed down?
It is all in the numbers. The number of sellers and the number of buyers. There are way more boomers selling then there are After Boomers buying. And, because of our current immigration policy, the numbers will not be changing significantly anytime soon.
Check the following web reference ( http://www.bbhq.com/bomrstat.htm )
Scroll down and notice the chart and resulting bar graph of US Births: 1940 – 1994.
The Boomer years start in 1946 and end in 1964.
Please notice the numbers in the After Boomer group between 1965 and 1982.
Start with the year 1947 and compare the number of Boomer births to the number of After Boomer births in the year 1966. Do this for each year thru the Boomer years.
There are far fewer After Boomers than Boomers (millions fewer).
In 2010 the Boomer age group will be 46 to 65 years old. Generally speaking, this group is the group that will sell their current home and down size or purchase a vacation home.
In 2010 this After Boomer group will be 28 to 45 years old. Generally speaking, this group will be purchasing from the Boomer group.
There just is not enough buyers coming on line to purchase the bid up homes the Boomers want to retire from. In other words, as the housing inventory increases - the bid prices will stagnate or fall because there will be too much inventory.
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