Interesting bit over at the Globe and Mail: Nearly a third of our population is boomers who will be nearing retirement soon. Should they be cashing in on the housing boom and sell early to fund retirement?
This could be one of the most important questions that baby boomers deal with as they enter retirement, and the financial impact will be widely felt. Expect a slowing in today’s hyperactive housing market, but not right away.
“There’s this idea that when the kids leave home, boomers will downsize,” said demographer David Foot, author of the influential book Boom, Bust & Echo and professor emeritus of economics at the University of Toronto. “Well, that doesn’t happen. You hold on to the family house, probably into your 70s because you want grandkids to come and visit.”
So figure on having about 10 years before a downsizing bulge alters the balance of sellers and buyers in our housing market. Should retiring baby boomers wait that long? Mr. Foot’s analysis certainly doesn’t suggest a bright future for house prices.
Read the full article here.