WHAT WE HAVE KNOWN FOR A LONG TIME IS OFFICIAL...WE HAVE A HOUSING SHORTAGE

It’s all been confirmed with a Sunday headline in the OC Register entitled, “Too many paychecks for not enough housing.” Southern California, and Orange County in particular, will be short around 100,000 housing units by 2025, according to some housing forecasters. What does that mean today? Inventory is officially at its lowest ever, causing buyers to offer over list price, waive appraisal contingencies, and up down payments. Experts predict another 4% appreciation this year, with possibly no end in sight as job hiring remains strong, especially in hospitality and health care. OC Register columnist Jonathan Lansner points out in a recent article that in many parts of the country, a family can expect to buy a home around 3 times their annual incomes. But in heavily demanded areas of major metropolis’ you can expect closer to 6-8 times your annual income, depending on how lofty your ambitions are for your ideal home and neighborhood. It may not all be glum news however...many Baby Boomers will perhaps jump into this amazing seller’s market, to sell the family homestead and move closer to grand kids or resort cities with ideal climates. Perhaps Boomers who originally didn’t plan on moving may change their mind with housing appreciation they cannot resist that makes a dream home possible in another location. Also expect these boomers to help out their Millennial grandchildren, that may not be able to buy any other way. The windfall of profit from the family homestead may make some Boomers a little more generous, which would