Nicola Kelland - Boomers effect market

In my previous article, I discussed the fact that there is a strong increase in activity in the real estate market from baby boomers buying down out of the family home for a new lifestyle. So how does this effect the market?

We all know that the demand for good family homes has been in hot demand for several years now in and around the desirable suburbs, but is this likely to continue? There has been some interesting editorial around the future of this market in the coming years as more and more baby boomers sell the big family home to downsize and either reduce or remove debt or save for their retirement.

Some real estate commentators are predicting that the supply of family homes available to the market will increase in the coming years and potentially this market may see a down turn in pricing, while demand for apartments, terrace houses and the like will become the new hot market. Over the past few years with the recession there has been very few apartment and multi unit developments created, this lack of supply has already affected the current market with multiple purchasers for good quality stock. But if we see more purchasers seeking the lifestyle choice that these apartments provide, the pressure on stock levels will increase.

With large numbers of baby boomers starting to downsize out of their family homes it will provide purchasers with more opportunities and increased stock levels created may result in lower pricing due to effect of supply versus demand. While none of us have a crystal ball to view into the future, this change in desirability of product may see some interesting changes in the coming years. If you are thinking of downsizing, it might be a good time to start putting your thinking into action and start selling.