Boomers Have Different Options For Different Needs

(The current housing market is creating a stir among just about everyone involved. Sellers and investors are reeling at the price declines as buyers as get warming up, about to make their next move.)

But what about the baby boomers? You know, the generations that started the United States housing boom from 2000 to 2005. What will they be forced to do as the market has reverted back and slapped them in the face?

Actually, the slap may have missed as boomers are making moves, but have plenty of options in doing do.

The article, "Boomers have array of housing options now" written by Linda Stern November 6, 2006 and posted on msnbc.msn.com, explains how baby boomers aren't quite panicking like one would expect.

Baby boomers have plenty of options when it comes to their homes.

"Take me and my neighbors. My husband and I are empty nesters who recently took out a sizable mortgage to pay for a large addition to our all-paid-up home. Now we're in debt again, and we have a big house to take care of."

"My neighbors, who are at a similar age and stage, just sold their big home and moved to a smaller one so they could eliminate their mortgage and cut the amount of time they spend on maintaining their home and working to pay for it."

Both decisions are justifiable to meet each different situation's goals and needs. The homeowner independently decided what was best. There was no influence to the matter, or was there?

"The NAR found that boomers have 'diverse plans and timelines, resulting in different housing requirements and significant shifts from patterns established by earlier generations.'"

In laymen's terms, the "different strokes for different folks" generation is still shedding its influence.

The NAR study discovered that baby boomers basically control and love the housing market, well at least their homes within the market. Over 80 percent of all boomers own a home with another 25 percent owning an additional property, such as a vacation home or seasonal rental.

However, most boomers are holding off purchasing a permanent second home until retirement and surprisingly enough many boomers are still a ways away from retiring.

"As they head into a new stage of life, boomers face a broader array of choices than their parents had. Now there are urban condos, suburban luxury town homes, and co housing communities - planned developments with shared facilities like laundries and dining halls - in addition to the retirement villages of an earlier generation."

Boomers are urged not to panic with the current status of the housing market. It will not bust and there will be plenty of younger people willing to buy in the near future. There is no sense in selling now and ultimately loosing money in the downward market unless there is no other choice.

Another option is to take out an additional loan with a 6.0 percent interest rate and invest it. Mutual funds and bonds will appreciate at a slightly higher rate and he or she will be able to free up some finances to make moves in the real estate market.

Baby boomers have been carrying the U.S. real estate and housing market for decades. Their time and influence will still be useful to the overall market picture.

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