The Housing Bubble - Maybe

Every day I hear about the housing bubble. Honestly, being in Atlanta I can't see it. Values inside the perimeter haven't even reached their full potential yet and there are many other growing cities with similar real estate markets. So if the bubble is not here or in other similar size cities with booming growth, where is it?

I think the housing bubble is along the coasts, the lake, the rivers and in the mountains. Where ever you have highrise resort style condominiums catering to the wealthy retiree or where the communities are centered around the retiring baby boom generation. The baby boomers are one of the largest segments of our population and they are gobbling up retirement and vacation homes at a staggeringly fast pace. What happens when the people of this generation are to old to take care of their second homes are need to move into nursing homes, back home with their children or during that unfortunate time when this generation leaves us for the great beyond?

That's when the bubble bursts! There are not enough people in the generations that follow to absorb all the property that will be available. A classic supply and demand situation will exist where an over abundance of supply will overwhelm the capable buyers and prices will come tumbling down. If you're buying a vacation home you may want to focus on a short-term plan and think about a strategy that keeps you focused on selling within 10 years when the bubble may begin to burst.