Greedy boomers living too long

From Fortune:

The ‘Oracle of Wall Street’ says home prices need to fall 20% to end the ‘generational schism’

Baby boomers own more homes than millennials and Gen Zers, creating a “generational schism” in the world of housing, according to Meredith Whitney, the “Oracle of Wall Street,” who predicted the Great Financial Crisis.

Boomers aren’t selling, and that’s a problem. “They’re not selling because they’re aging in place, because they can’t afford to go anywhere else,” Whitney said last week in an interview with CNBC. “Until they sell, you’re going to have this real standoff between sellers and buyers.”

So what’ll it take? Well, home prices have to fall; Whitney said prices need to drop about 20%. But that price decline would only take us to the price levels of three or four years ago before the pandemic and its corresponding housing boom. Plus, people would still have a lot of equity in their homes, Whitney explained, so it wouldn’t be a housing crash.

At this point, it doesn’t make sense for a lot of people to sell their homes because they have either locked in a low mortgage rate or own their home outright. To give that up would likely mean a much higher mortgage rate, and a much more expensive home. Considering an unwillingness to sell from older generations, that leaves fewer homes for younger generations to buy; those that are for sale are, in some cases, unaffordable because prices continue to rise since supply is tight—and mortgage rates are higher than what people are used to.

In some cases, people list their homes at exorbitant prices and sell if they get an offer, or stay if it doesn’t meet their expectation, Whitney said. Sales are depressed, particularly at the middle and lower tiers of the market, whereas luxury is sort of carried by all-cash offers, she added. “Something has got to give in the regular market,” Whitney said. “I think you’re going to start to see home prices go down.”

“For homes to be affordable, that’s going to have to happen,” she added. Whitney said she wrote a letter to whoever won the presidential election, telling them they have to let home prices drop, and it wouldn’t be the end of the world, for one, because “demand may be overstated.” (She didn’t provide any other details on the letter.)

In an interview with Fortune earlier this year, Whitney said she sees home prices falling 30% partly because young, single men are living at home, playing video games.

This entry was posted in Crisis, Demographics, Economics, Housing Bubble, Humor, National Real Estate. Bookmark the permalink.

80 Responses to Greedy boomers living too long

  1. EX says:

    F-ck Maga Fiiiirst

  2. grim says:

    Ok what Thursday are we looking at for this gtg.

    Dec 5, 12, or 19?

  3. Fast Eddie says:

    I’m flexible, literally and figuratively. ;)

  4. Juice Box says:

    Re: boomers can’t “go anywhere else”

    Errr there are 65 million boomers alive Whitney do you expect them to all move to Florida or Arizona?

  5. Fast Eddie says:

    Die Boomers, Die!!

    A 20% drop? Maybe if the majority of boomers nationwide list their house this weekend. The mortgage rate’s the key, drop the rate 150 basis points and you may see a flow.

  6. grim says:

    SpaceX/Starship test at 4pm today, the last test flight was spectacular.

  7. Hak Tua, Chief grabs 'em by the pussy says:

    I thought we would do it this Thursday. Well, if we are not, then the only December date that works for me is the 12th. Thanks Grim. It’s about time.

  8. Juice Box says:

    Very fast turnaround on the Starship from launches this year in addition to complete rework of Starship’s design of the entire thermal protection system with newer-generation tiles, a backup ablative layer, and additional protections for the flaps.

    This one can probably land on a pad. I think however they are going to dump it in the Indian Ocean again, because the FAA won’t approve other flight paths.

    That won’t be the case next year.

  9. Fabius Maximus says:

    I can do this Thursday. There is a chance that Mrs Fab makes a guest appearance.

  10. Fast Eddie says:

    Fabius,

    Look above – Dec 5, 12, or 19

  11. Chicago says:

    Ten 437

  12. Chicago says:

    Waiting for a Pumps post that he bought SMCI at 17.25 right before BDO stepped in.

  13. Hak Tua, Chief grabs 'em by the pussy says:

    I don’t believe a word that comes out of that fools keyboard.

  14. BRT says:

    They got your plastic bags, they got your straws, now they are coming for your bird feeder.

  15. Phoenix says:

    Elon got ya covered, Paypal Mortgage.

    The new administration is widely expected to resume a push to remove Fannie Mae and Freddie Mac, the two national mortgage behemoths that buy up huge quantities of loans, from government control.

    The firms are deeply embedded in the workings of housing finance in America, and the popular 30-year fixed rate mortgage simply wouldn’t exist without them. Fannie and Freddie don’t make mortgage loans directly, but rather buy and package them into securities. Together, the companies guarantee about half of existing home loans.

    The arrangement brokered more than 15 years ago was never meant to be permanent. But while some economists and policymakers have since taken a “don’t fix what’s not broken” approach, Trump’s advisers are widely expected to try to finish what they started before the pandemic hit. Many conservatives believe the government shouldn’t directly control such large businesses and that companies like Fannie and Freddie need buffers against the political agendas of a sitting White House.

  16. BRT says:

    SMCI reminds me of the last days of Silvergate.

  17. Phoenix says:

    God sent you Covid, and you whiffed on it-you might get a second chance with H5N1 but probably not this year.

    Baby boomers own more homes than millennials and Gen Zers, creating a “generational schism” in the world of housing, according to Meredith Whitney, the “Oracle of Wall Street,” who predicted the Great Financial Crisis.

    Boomers aren’t selling, and that’s a problem. “They’re not selling because they’re aging in place, because they can’t afford to go anywhere else,” Whitney said last week in an interview with CNBC. “Until they sell, you’re going to have this real standoff between sellers and buyers.”

  18. Phoenix says:

    The Peoples Repulic of NJ never disappoints.

    BRT says:
    November 19, 2024 at 10:10 am
    They got your plastic bags, they got your straws, now they are coming for your bird feeder.

  19. Hak Tua, Chief grabs 'em by the pussy says:

    And your flouride.

  20. Phoenix says:

    Juice,
    That last Mega Starship appears to be damaging structures far from it’s landing point.

    Elon may have to pay for homes, or pay structural damage bills.

    Thing must be a beast.

    The loudest noise during the test came not during the Starship liftoff, as the giant rocket powered by 33 engines rose into the sky. Rather, the test data indicated that the peak noise was generated by the sonic boom about 6.5 minutes after liftoff, as the first-stage booster returned to the site for its self-landing at the launchpad.

    During liftoff, the city of Port Isabel’s sound impact reached a maximum of 105 decibels, the data shows. That is roughly equal to the noise level emitted during an average rock concert or use of a chain saw. As the first-stage booster returned, the maximum perceived noise level in Port Isabel and South Padre Island was about 125 decibels, which is equivalent to a gunshot at close range.

    As that sound hit the community, it briefly created an overpressure event exceeding 11 pounds per square foot, compared with the maximum eight pounds per square foot in South Padre Island that the F.A.A. had projected in October.

    Separate tests were conducted last month by a sound consultant, Terracon of Houston, hired by city officials in Port Isabel. Officials there have been increasingly concerned that the SpaceX launches might be damaging homes in the small city of about 5,000 residents.

    Terracon found a peak sound pressure level of 144.6 decibels as the rocket descended, which is also higher than Port Isabel expected, said the city manager, Jared Hockema.

    “We are all for economic development and the work SpaceX is doing,” Mr. Hockema said. “We just want economic development that takes place in a manner that follows the law and does not hurt existing residents or the environment.”

  21. Juice Box says:

    Jersey Mike’s sold….$8 billion to Blackstone…

    Not bad for a kid from Point Pleasant.

  22. Hak Tua, Chief grabs 'em by the pussy says:

    He must have really been impressed by DeVito.

  23. Phoenix says:

    This guy has interesting videos. Never knew this:

    https://youtu.be/sH1PVVJuBtE?t=527

  24. RentL0rd says:

    I can’t do this Thursday.

    Next Thursday will be interesting since our oldest kid said he’ll bring his gf over – who seems to come from a deep MAGA family. God help us!

  25. OC1 says:

    They got your plastic bags, they got your straws, now they are coming for your bird feeder.

    Just the other day I was in the supermarket and was thinking how easily everybody adapted to the plastic bag ban.

    But the proposed bird feeder rules (like you need to empty it or bring it inside every night) seem a bit extreme to me.

  26. Fast Eddie says:

    Look at the dates Grim posted, people!! I feel like you kids are my colleagues, needing to constantly point out the obvious!! ;)

  27. Phoenix says:

    Guess then he can just grab her by the pussy and bring her there.

    RentL0rd says:
    November 19, 2024 at 10:49 am
    I can’t do this Thursday.

    Next Thursday will be interesting since our oldest kid said he’ll bring his gf over – who seems to come from a deep MAGA family. God help us!

  28. Phoenix says:

    A proposed Alabama law would require that all men get a vasectomy after they turn 50 or after the birth of their third child, whichever comes first.

    The bill’s sponsor, Democratic state Rep. Rolanda Hollis, said the measure gives perspective to reproductive health laws, including the state’s contested abortion ban.

    “It always takes two to tango,” she told AL.com. “We can’t put all the responsibility on women. Men need to be responsible also.”

  29. Hak Tua, Chief grabs 'em by the pussy says:

    In Alabama, perhaps that number should be lowered to zero?

  30. Phoenix says:

    His Wiki makes him out to be a good guy. There is hope.

    President-elected Donald Trump is expected to nominate Wall Street banker Howard Lutnick as commerce secretary

  31. Phoenix says:

    https://en.wikipedia.org/wiki/List_of_people_from_Alabama

    Hak Tua, Chief grabs ’em by the pussy says:
    November 19, 2024 at 11:21 am
    In Alabama, perhaps that number should be lowered to zero?

  32. Hak Tua, Chief grabs 'em by the pussy says:
  33. Fast Eddie says:

    Floyd Vivino… ran into him a number of times. He came to a cousins party a few years ago, entertained for an hour. He has records in the thousands. God only knows how many songs he can play on the piano.

  34. BRT says:

    OC1, if you mean adapted to, half of the places I go to give out plastic bags anyway. They all put their straws out. And those that “comply” just fill everything in the reusable bags as if they are disposable. Personally, I just shop in PA now.

  35. OC1 says:

    Personally, I just shop in PA now.

    I actually prefer using my own bag. 1 big Home Depot bag holds all my groceries, and I’ve never had one break.

    Going to PA just so you can get plastic bags seems a little extreme to me, but to each his own.

  36. BRT says:

    I live on the border, and everyone in Buck’s County is a lot more pleasant. It’s a nicer experience overall. I use the bags in my small garbage cans. I have about 20 reusable bags at this point in NJ. We aren’t saving the planet here. Every packaged good you buy at the store has orders of magnitude more plastic than the bags that would house them. If you really want to save the planet, go back to glass and paper. Biodegradable, really recyclable, and sustainable.

  37. SmallGovConservative says:

    OC1 says:
    November 19, 2024 at 10:55 am
    “Just the other day I was in the supermarket and was thinking how easily everybody adapted to the plastic bag ban.”

    What was the goal of the plastic bag ban? Has the guv issued an update to confirm whether the plastic bag ban has been successful? Of course not; it’s simply been another inconvenience for law-abiding, tax-paying citizens so that the useless Dems can virtue signal. Meanwhile, in FL you can still get plastic bags if you want, and the roadsides and medians are immaculate and manicured, while NJ’s blighted, littered roadsides look like Tijuana in many places.

  38. OC1 says:

    Well my point is that, despite all the histrionics when the bag ban went into effect, NJers adapted quite well, and nobody (except for the crazies) seems to be bothered by it anymore.

    As for “roadsides and medians are immaculate and manicured (in Florida)” maybe you should travel outside the touristy areas.

  39. RentL0rd says:

    Touristy vs non-touristy city cannot be over stated.

    I was in Quebec City in Summer. Old Quebec City is beautiful, quaint, expensive restaurants and fancy french speaking service. Come down the hill into new Quebec city and it’s just a shit hole. Homeless everywhere, plastic trash all over and even had a couple of stoned homeless guys chasing our car.

  40. Fast Eddie says:

    What was the goal of the plastic bag ban?

    It’s symbolic. The modern dem party is about appearances, not solutions.

  41. EX says:

    1:10 Okkkkkay. Let’s see how many “solutions” you guys come up with over the next “2” years. Project 2025…..bahahahhahaaaaaa Oh you rubes.

  42. Hak Tua, Chief grabs 'em by the pussy says:

    Trump already found one solution. How to stay out of jail.

  43. EX says:

    Wall Street Journal had an interesting OP Ed. Seems like people are just plain tired of the DEMs nonsense and want someone to bring the US back to Normal. Should be interesting how that plays out. I am certainly entertained.

    My prediction is that in two years the economy will be so bad, people will be screaming for new leadership, but it’ll be too late. The Dems are the GOP is clueless and anyone with the imagination and the means will be sheltered from the chaos.

  44. Boomer Remover says:

    Meanwhile in the desert:

    6/17/2022 Listed for sale $1,995,000+71.2%
    2/24/2021 Sold $1,165,000-0.3%$596/sqft
    8/6/2020 Listed for sale $1,195,000+55.2%$611/sqft
    4/10/2020 Sold $770,000-35.6%$394/sqft

    h**ps://www.zillow.com/homedetails/7137-E-Rancho-Vista-Dr-UNIT-7008-Scottsdale-AZ-85251/81991386_zpid/

  45. Hak Tua, Chief grabs 'em by the pussy says:

    Speaking of the desert.

    “Las Vegas realtor shot, killed by police after calling for help during home invasion”

    https://www.usatoday.com/story/news/nation/2024/11/18/brandon-durham-las-vegas-police/76401735007/

  46. Juice Box says:

    Finland which just joined NATO in April of this year wants to involve article 5, per their female foreign minister.

    Look woman how about sending some divers down to look at the fiber cable cut before starting WWIII?

  47. RentL0rd says:

    7:49
    >> I’m flexible, literally and figuratively. ;)

    Eddie is also flexible with his morals.

  48. BRT says:

    Call me crazy but an old man with dementia shouldn’t be allowed to try to ignite World War 3…especially after he was kicked out of the race by his own party.

  49. grim says:

    Lol, spacex to start streaming at 4:20

  50. OC1 says:

    Finland which just joined NATO in April of this year wants to involve article 5, per their female foreign minister.

    Look woman how about sending some divers down to look at the fiber cable cut before starting WWIII?

    Article 5 doesn’t require NATO to do any kind of armed response, just that they assist the member who’s been attached. That assistance can be non-military.

  51. Hak Tua, Chief grabs 'em by the pussy says:

    Wow, Dr. Oz.

    Be proud MAGA.

    I wonder what cabinet position Spongebob gets?

  52. chicagofinance says:

    The bag ban is ridiculous and inconveniences me every weekend. I shop for the entire household, but am constantly switching cars. I find myself pointlessly juggling individual items. The part that really bothers me is the idea that Murphy pats himself on the back, yet, when does HE ever go shopping. Pampered prick.

    OC1 says:
    November 19, 2024 at 12:53 pm
    Well my point is that, despite all the histrionics when the bag ban went into effect, NJers adapted quite well, and nobody (except for the crazies) seems to be bothered by it anymore.

  53. Hughesrep says:

    Neither Dr Love nor Dr Feelgood were available

  54. Hak Tua, Chief grabs 'em by the pussy says:

    Mt. Murphy, in the corner of our dining room, gets larger and larger. So much so that we find ourselves giving away bags to food shelters. We never buy them either. We just keep seeming to aquire them. I don’t think we saved the environment at all. And supposedly, the production of many of these reusable bags use a ton of energy and is heavy polluting. Kind of like the manufacture and disposal of electric car batteries.

  55. Juice Box says:

    No “chopstick” catch today for the booster oh well.

    Starship stuck the landing in the Indian Ocean, too bad they did not have a drone ship to catch it.

  56. Juice Box says:

    I always bring an extra empty bag and give it to someone inline at self checkout that does not have one. Pay it forward folks.

  57. Hak Tua, Chief grabs 'em by the pussy says:

    I give mine away as often as possible.

  58. EX says:

    Even CA has bags, they’re 10 cents each.

  59. Juice Box says:

    Ex – 10 cents? Not around here..no paper bags allowed….

    You must stockpile the reuseable plastic bags and even ShopRite charges and extra $1.50 plus tax if you order online delivery that only covers the delivery bags…….

  60. Juice Box says:

    I am not knocking the idea of eliminating plastic bags folks…..it would be fine if we only had paper bags….

  61. OC1 says:

    IMO, if you’re still stewing about the bag ban after all these years, you need to take a chill pill.

    Just accept it as part of the little “friction of life” stuff that we all deal with everyday.

    Your blood pressure will thank you!

    Namaste

  62. Fabius Maximus says:

    I should be able to do any Thursday.

    The 12th I have to do a Zoom court date with the town. I take the bus into the city every now and then. I had to head in to the NY office and I parked in the bus lot, in a car without a resident sticker. The PD could have run the plate an wrote a warning, but banged me with a $100 ticket. The stickers are free and I have them on most of my cars, just not the one I drove that day.

    No Veterans days cookies for them going forward.

  63. SmallGovConservative says:

    OC1 says:
    November 19, 2024 at 7:01 pm
    “Just accept it as part of the little “friction of life” stuff that we all deal with everyday.”

    You Dem stooges are beyond help. The friction that you’re so willing to accept, is heaped upon you by blue-state Dem politicians — who don’t know how to do anything except make life difficult for law-abiding, tax-paying citizens — precisely because there are more of you that are willing to accept it, than there are of us who don’t want to accept it. This particular friction doesn’t exist in FL for example, where you can have plastic bags AND clean roadsides. As a Jew, you can go to college in TX and not be harassed and barred from parts of campus — a ‘friction’ that you very well may have to live with in a blue-state. As a red-state parent you’re never going to have your kids forced into remote learning so that the sanctuary Dems can use the school building for illegal immigrants — as happened last year in NY. Here’s to hoping you guys get Carmella and Tampon Tim again in 28!

  64. Juice Box says:

    G20 – No Biden… too slow to make it for the pic.

    Note Russian minister Larov is there. Why no arrest? He is already no fly zone everywhere else yet no jail? Here is their chance…

    https://x.com/Kanthan2030/status/1858780185929379996/photo/1

  65. Fabius Maximus says:

    The biggest impact of the Plastic bags for me was losing the Shopping baskets at my local ShopRite. The manager told me that people were doing their shopping and just dropping the basket into the back of their car.

    I dont mind the bags and I get the Chi, multi-car multi bag dance. Its a pain, but livable.

  66. OC1 says:

    Man, doesn’t take much to set off SmalGov, does it?

  67. Fabius Maximus says:

    Dr Oz to run Medicade.

    Weightloss drugs (Speed) for all !
    https://www.youtube.com/watch?v=7TBwFfjXd3s

  68. BRT says:

    You seem to think that we’ve actually reduced plastic consumption. There was a report not too long ago that said because people were using the thicker plastic bags as essentially disposable after 3 uses, we ended up consuming more plastic, not less. Good intentions don’t always lead to good outcomes.

  69. BRT says:

    btw, the supermarkets in NJ lobbied to ban the paper bags as well because they wanted to sell you these plastic bags. So much for the environment.

  70. EX says:

    7:56 no, he’s a moron. Anyway …,

  71. EX says:

    It’ll be great to be lied to and gaslit for the next few years
    By one of the biggest douchebags to ever fog a mirror.

  72. OC1 says:

    You seem to think that we’ve actually reduced plastic consumption.

    Never said that. I really have no idea.

    But i do find it kind of funny that we’ve got like 20 posts about plastic bags.

    Didn’t know that my observation that NJers have adapted to the bag ban was so controversial!

  73. Fast Eddie says:

    “Tren De Aragua now has footholds in California, Colorado, Florida, Georgia, Illinois, Louisiana, Nevada, New Jersey, New York, North Carolina, Tennessee, Texas and Wisconsin.”

    I hope they don’t disrupt transgender story time.

  74. njtownhomer says:

    Next would be Surgeon General Dr. Phil.
    Gaetz may be subbed with Judge Judy

  75. Libturd says:

    Tren De Aragua now has footholds in California, Colorado, Florida, Georgia, Illinois, Louisiana, Nevada, New Jersey, New York, North Carolina, Tennessee, Texas and Wisconsin.”

    What’s to worry? Trump promised they’ll all be deported.

  76. White Trash Eddie says:

    What’s to worry? Trump promised they’ll all be deported.

    Well, if the democrats didn’t rig things four years ago, this gang would’ve never crossed the border in the first place. And, Trump would be out of office in a matter of weeks now. But, as it goes, the left shot themselves in the head and not only did we witness the greatest political comeback in history, we’re about to shake out the bloated abuse and leeches at the FED level. Decisions have consequences but who would’ve thought we’d see the death of the progressive left and all their weirdness?

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