Saved by Generation X

Thank goodness for Generation X. They’re the young folks born between 1965 and 1979. They’re now entering the real estate market for their peak house- buying years. And just in time. A slower market, still reeling from all of the dizzying street theater of the last three years needed some ballyhooing upwards.

Thank goodness for Generation X.  They’re the young folks born between 1965 and 1979.  They’re now entering the real estate  market for their peak house- buying years.  And just in time.   A slower market, still reeling from all of the dizzying street theater of the last three years needed some ballyhooing upwards. 

 

Can investors rest easy because of  Generation X’ers?  Pretty much. 

 

It’s definitely  a buyers’ market, but many of the X’ers are still sitting on the sidelines.   Why?

 

They don’t think the market has bottomed out yet.  They’re waiting to see how far  down it will go. Next question is how will they know?  How will anyone know, for that matter? 

 

“We’re nearing the end of the slowdown for most markets,” Ethan  S. Harris of Lehman Brothers tells the Wall Street Journal.  “Prices still have some ways to fall before they stabilize, but there are signs that the most drastic parts of the downturn-marked by a sharp pullback in demand and new construction-have run their course.”

 

In other words, there  wasn’t a nuclear  fallout after all .  However there have been smaller bubble bursts. “There’s no reason for prices to be falling in areas without a bubble,” he goes on to say.  “People are just slowing down purchase decisions.” 

 

Okay, so that’s nothing new.  We’ve known there were markets inFlorida,California,Nevada andArizona where investors had over-speculated, driving prices to artificial highs.  But when will the X’ers really jump into the market?

 

Just as soon as they come to the conclusion it’s now or never.   When the  “Mildred, we’ve got to find a place to live” concept kicks in.   I don’t think that  will  be long.

 

The economy is strong.  It can carry the real estate markets.  Job growth is very good, and from the looks of it, Christmas won’t be bleak for a lot of consumers.  If inflation remains steady and energy prices don’t go haywire the X’ers  will  start thinking about the same things their parents and grandparents were concerned about.  Good neighborhoods, good schools, etc. 

 

 

However, here’s a warning.  Generation X is not exactly like the Boomers. There are marked differences.  Beware as you rehab.

 

Master suites and kid wings are going out of style  as are  fancy over- the- top kitchens. X’ers don’t care as much about the prestigious zip codes either.    There will be more single home owners who will not need all that space.   These are important points to ponder as you invest in the new markets. 

 

Don’t forget there are still other buyers in the  future.   Immigrants and Generation Y will make their own impact in the years to come.  Smart investors will be keeping  the needs of  all of them in mind now  so that future profits will be reaped.