Quote:
Originally Posted by John Mercier
Same as some call the ''rocking chair'' rule.
My grandfather used to say as you neared retirement, you would realize that you had enough resources to pursue some of the things you may have wanted earlier in life, but could not afford or were too financially cautious at the time to splurge on.
As the Boomers, the largest population in the US yet to reach that stage, continue into that stage... the demand for those things increases to the point that demand is relatively constant.
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I agree with this. In addition to age demographic is the average wealth of today's buyers vs yesterday's.
Years ago, people would strive to afford a lake house, and buy as soon as they could, taking out a mortgage in the low six figures. When that home appreciated it was a significant percentage of their net worth. it could be cashed in for a meaningful improvement in lifestyle elsewhere.
Today it's millions for a waterfront property. Buyers are using gains from their employee stock options or stock portfolio. These buyers are often set for life. (Really--would you drop $2-3MM on a vacation spot if you weren't set?) Thus these new buyers will not tempted to sell for lifestyle/cash considerations. Thus their holding period is likely to be longer, diminishing future inventory