What is this “Silver Tsunami” I keep hearing about?

[Marc Winter]

I've been hearing that millions of baby boomer homes are about to hit the market. Over the next decade, I’m sure a lot of homes will change hands as older owners (like me) downsize, relocate, or pass properties on to heirs.

But don't make the mistake of thinking this will suddenly “fix” housing affordability everywhere--it probably won’t.

Some markets will absorb that inventory almost immediately because jobs, population growth, and inbound migration will remain strong. Other areas may struggle with too much aging inventory and not enough qualified buyers.

In some high-cost areas prices may barely move at all: real estate has always been hyper-local. A national headline doesn’t tell you what’s happening in your county, your town, or even your zip code.

In other areas, older homes may need major updating before younger buyers even would consider them. And in other areas, the demand may stay strong enough so that new inventory simply gets absorbed without too much price correction.

So instead of watching headlines, check out your inventory levels, job growth, migration patterns, and DOM, in your local area. Real estate markets usually changes quietly and slowly before headlines catch up. Seasoned investors and brokers have learned that.

What are you seeing in your local market?
Are older homeowners starting to transition out… or are most still holding tight?

[Chris Seveney]

Quote from @Marc Winter:

I've been hearing that millions of baby boomer homes are about to hit the market. Over the next decade, I’m sure a lot of homes will change hands as older owners (like me) downsize, relocate, or pass properties on to heirs.

But don't make the mistake of thinking this will suddenly “fix” housing affordability everywhere--it probably won’t.

Some markets will absorb that inventory almost immediately because jobs, population growth, and inbound migration will remain strong. Other areas may struggle with too much aging inventory and not enough qualified buyers.

In some high-cost areas prices may barely move at all: real estate has always been hyper-local. A national headline doesn’t tell you what’s happening in your county, your town, or even your zip code.

In other areas, older homes may need major updating before younger buyers even would consider them. And in other areas, the demand may stay strong enough so that new inventory simply gets absorbed without too much price correction.

So instead of watching headlines, check out your inventory levels, job growth, migration patterns, and DOM, in your local area. Real estate markets usually changes quietly and slowly before headlines catch up. Seasoned investors and brokers have learned that.

What are you seeing in your local market?
Are older homeowners starting to transition out… or are most still holding tight?

 I live in northern virginia (inside the beltway) - which has very limited inventory and available land. I have lived in my neighborhood for over ten years and we live in an area with .5 acres - 1 acre lots which for this area is a lot of land. Many of the homes were builtin the 1960s and when we moved here we tore down the existing home and built a new home. There were 3 other homes in the area that were also knock down / new builds. Fast forward to today and when I go for a walk there are two new teardowns done and new homes going up, and 5 other homes that have recently gone up. So what we are seeing is older people moving on and the homes all being knocked down as the cost of the land has more valuable than the home currently on the property.