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I was actually chatting with the DW on the way in today about this. Unfortunately this bubble (which has been around for a while) coincided with a Bear market which coincided with the start of the Boomers' retirement (I may be a little off with the Boomer thing - I never know how old they are). As in all things related to the economy...quite complicated.

The way I see it does not bode well for the boomers.

A lot of people lost a lot of money in their retirement accounts the past two years. Those people who need to retire shortly (meaning however long it takes to recover enough to retire) MAY have to sell their homes to compensate for stock losses. They may also decide to continue working (a whole other problem). If the boomers decide/need to sell their homes to retire they're going to drive prices down. Bubble bursts! This is great if you're buying your first home but, for those upgrading their house, their prices might also get driven down.

The wonderful thing about housing is it is based so much on LOCATION that your place may go up and the boomers' neighbourhoods may go down.

That's what I'm hoping for. Still, not good for the Boomers.

Simon
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