demographics
Is it time to sell the McMansion?
May 8, 2008 by admin · Leave a Comment
Despite the slower market right now, shifting demographics say it may be time to downsize now.
As usual, it’s all about the Baby Boom. Here’s some facts:
- The baby boom is just starting to downsize.
- As Boomers who want to downsize, many of us want smaller homes that are closer-in.
- The generation behind the baby boom is smaller, less prone to buy large houses, and is inclined to live in higher density, closer-in areas.
- Housing economists predict the average household size and average home size will be shrinking in the future.
- Presently, there is an over supply of condos and townhomes on the market.
This brings up two questions. 1. Who will buy our mcmansions in the ‘burbs in the future? 2. If smaller homes and condos will become more popular, their prices should rise faster than the overall market, and doesn’t it make sense to buy now, when they are being sold at a discount due to over-supply?
This sounds like a sell-high, buy-low strategy.
