Inventory has been declining in LA and around the country for several years. While there are many reasons for this (which I won’t get into here) the bottom line is that several economists are predicting this may slowly be coming to an end.
Why? If you didn’t know, the baby boomers are a particularly large demographic that will be downsizing in the not so distant future. Right now they are between the ages of 54-72 respectively and there are many of them. Not only are they high in numbers but they are also high in home ownership rates. Think about this fact: 39 million of 75 million homeowners were born before 1960 which is 52% of the total number**. That’s a lot of inventory coming on the market my friends.
Of course some will be passed down to children, and I know a few, most will be sold to help pay for living expenses and health care costs. As more and more of these homes come on the market over the next few years, inventory will surely lighten up.
Is it this year at the peak or next year? No one can answer but look for sunnier skies ahead.
- Crissi Avila
**Big Shifts Ahead by J Burns & C Porter
Crissi Avila will teach you how to buy smart. We’ll look at location, development, and turnover so you can spot opportunities long before most even start considering them.