Aug 11, 2017|
Prashant Gopal (Bloomberg, Baby Boomers Won't Sell) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
These people first who refuse to sell are dominating the housing market the reporter on this story for shot go pol from. Bloomberg and he joins us today on the financial exchange I duper shot. Oh good so per shot what percentage. Of owner occupied houses. Are old by people over age 55 today. So that's it he 3%. At. Jump firm about a decade ago or forty in response. So ten yet while and and and what what. Look at what's what do you attribute to that too would like why is it that's a huge move. First pick people over 55 today owned 53% of the available rules. Yeah interestingly I request. I am sure some of them on. We'll look back all of it and 19100. Which is our balcony you know. This as sort of local. Reasons for the the you know what one and that this is a very much. Group of people in on Tuesday rumors were huge stake in the human control population. Yup. Share. And these houses and so why would that be. One. You know boomers are living longer but we're you know we're working on her. AJ McLean. So for those reasons. Yeah you know they're they're less likely to one. I sister sister Alex. The house that they've been and her long time. On another thing is that they didn't hurt on the downside. And the it started market uses. These are some things all the ones so it's the same car. Was there it is very tight market and on but. They're they're kind of picking wild day of boo yeah. You know it's you know remove it possible to beat her expenses program went out and play. Would dead wood about millennial stumble any ill defined as eighteen to 34. What percentage of millennial lose or owning real state vs a decade ago. Well you don't know what it's all. We want their kids about eleven post and yelled out in the most of those numbers in these. All met you know interestingly you look at. Boomers and their. You're certainly some uncertainties. They haven't about twice. That sheer. Owner occupied if you know. We were or are more. You know one of the advantages the burgers they came master. Silent Generation which is Britney. A much smaller group of people and so they weren't. Didn't they weren't spreading up against that generous in the same oil. The giants polluter should they were I'm. We would do what's gonna cost the a break in the logjam here he had people young people that are really struggling they wanna buy a house. And yet boomers just don't seem to be willing to part with them that way what wins the tipping point. Well. One thing is like you know put let them as soon. Instead they beat the cultural sense that people were fabulously. That you. The community and they've they've you know been an allied. Orders something. On anyone because the front of them. And you know for good reasons so if we failure by picking up you know. It then those sorts of things. So over time they like over the next 1020. Years now been searching people you know. The force believes for whatever reason you know maybe it assisted. Living there. War you know the certain he people dying and you know that happens I want. To make that story that. He says there's going to be adequate saw that he says that the bad about me and twenty years. On the road than at that point he thinks that our. Markets. The sort of soft and color crash. Because you know they'll have a lot of people want out of the market. Great value in these sort of invisible on the court. These homes are not a coming out of the markets and you know people were shopping turns out things. That are the. Per shot thank you very much for your time we appreciate it. Thank you are shot go call Bloomberg talking about boomers not willing to sell their homes and chuck I I can tell you as a boomer. When I look around my peers now you're here you're 58 you're 62 you're 64 you're still working yup. In your saying to yourself well. You know the transactional costs associated with moving. Are upwards of what six to 8% maybe maybe higher in India to paint on the buy side as well. I mean you look at it and you say. I didn't tell you that but I have a lot of friends that live in houses they don't need. Four of the bedrooms. That the that they have. And yet nobody spinning them in years and I think this is one of the most under talked about reasons why you have low housing inventory now it's it's not the people. Just people it's not that they don't want to sell the just choosing not to because they say look it's just too much hassle they say look I want to sell my house but I don't wanna go through paying all those costs and everything and so they decide not to. And in the other thing is there's no inventory on the low end rubio and so it created this bottleneck where. There's just not enough turn over happening in housing and that's that's I think the key problem that you're seeing right now. Is there's just not enough turn over there in the works have gotten down to port. Well in you know but boomers had lots of kids millennial as don't have many kids if any. And so a boomer when they do sell or put their five bedroom colonial up. In the boot and the millennium serious it would order five bedroom house we re getting in and and we don't want three car garage we want to. You know three bedroom house and of one or two car. Right exactly it's that there's a mismatch between the types are housed the millennial want to buy and the types now as the boomers are trying to sell so. It's. There's a combination of a number of different pieces. That unfortunately. Has kind of gotten is in his gotten us into this place where inventories in depressant you just not seeing an up out there. And so prices have continued to rise largely I think on the back. Of low inventories do we know incomes are going up now did you were we we don't have prices rise and gazing comes in shooting through the roof. If sting to see the results of our pulled thus far we asked as a baby boomer. Do you plan on selling your home in the next five years Tucker and 45%. Are saying. Probably gonna sell my house in the next five years 55% say no thanks I'm gonna keep and the like close 5050 here in out their very interest in.