We are having our bathroom remodeled. We did a gut remodel of our Vista Hills home when we bought it ten years ago. The original tile contractor installed the shower pan wrong. Our sub-flooring had been rotting away without us knowing it until recently. We are now having to remodel it all over again.
Today the glass shower door guy came by the house to give me a bid on a new glass door. Of course, nothing stock would work. My new tile guy and the glass guy got to chatting. They just exchanged normal pleasantries. Then one asked the other if he was busy with work. Both laughed saying each was swamped with projects. This got me thinking about the reason they were both so busy.
In most normal life cycles upper middle-class Baby Boomers should be downsizing and /or migrating to warmer climates now. This would open up their larger homes to Millennials to buy and raise families. The Baby Boomers are frozen in their homes afraid to move on. They have heard stories of how hot the market had gotten. How buyers were in the throes of insane bidding wars. The Boomers are not afraid to sell, they are afraid to buy.
They fear selling their home because they might not be able to purchase their next one due to the huge demand. They do not want to be living out of suitcases in a hotel room, or worse…. moving in with their kids till they buy a new home. So instead of selling, Boomers have stayed put in their homes, and hiring remodeling contractors. Boomers are fixing up what they have been putting off doing. This is the reason why my tile and glass guys are so busy.
There is a new wrinkle in Vista Hills…the market has started to cool. Homes are not flying off the market. Homes are sitting longer. Many of them have taken price reductions. Most of these homes were correctly priced for a quickly rising market, but prices are now quickly being adjusted to reflect the current market.
Do not fear this cooling off period! It is a sign that we are entering into a more balanced market. Sellers will not get above asking price in 3 days anymore. Buyers will actually have more reasonably priced homes to select from. This should start to free up the “frozen” Baby Boomers to sell their homes. There will be less fear that they will not be able to buy their next home. Millennials will be able to purchase the bigger house they need for their young families.
This will also mean a change for the contractors who remodel…They will not be getting expensive jobs from Boomers who want only the best. They will be getting young families with less money and simpler projects. The contractors will become more competitive, and less “swamped.” Local economics at work.
Now with the market becoming more balanced, let me know if you are interested in making new plans for your future. We can discuss your options of selling and buying. That is what I am here for.