When The Boomers Burst Instead Of The Bubble

In my ten years in real estate, I will always remember this one interaction that encapsulates the current housing market. An older couple, maybe my parents age, come in and ask to speak to me in person. I don’t recognize them but they introduce themselves as the parents of someone I tried to help find a starter house for but didn’t have much luck in their budget.

Me: “Oh, yes, I remember. How can I help you?”

Mom: “Well, full disclosure, our daughter doesn’t know we’re here. She’s living with us at the moment so she can save up for her downpayment.”

Me: “Yes, I remember her mentioning that.”

Mom: “Well… the thing is…”

Dad: *Aggressively taking over.* “She’s been with us a year already! It’s taking too d*** long! She said she found a house that she wanted to move to, so we’re stepping in to sort this out for her.”

Me: “…okay?”

Dad: “We’d like to put $5,000 down on her behalf so she can put in an offer and move in straight away!”

Me: “That’s very nice of you, but there are a few legal reasons why I can’t do that without her present, but the main reason is that won’t be enough money to secure the mortgage she’ll need.”

Mom: “What are you talking about?! She said she already saved $10,000! With our contribution that should be more than enough!”

Me: “She needs a deposit of $50,000 to secure the house.”

Dad: *Almost spitting.* “Fifty?!… Fifty?! What is she trying to buy, the Playboy mansion?!”

Me: “I’m not at liberty to say, but house prices in the neighborhood average around half a million.”

Dad: “That’s ridiculous! Are these mansions in the middle of the city?!”

Me: “Two-bedroom houses in [neighborhood on the outskirts of the city].”

The two of them just stare are me for an extended moment, waiting for me to say “just kidding!” They figure out that it’s not coming, and they visibly slump at the realization that their grand gesture is nowhere near grand enough.

Mom: “That’s… more than we imagined.”

Dad: “Why did she tell us the house was fifty grand?!”

Me: “Again, I’m not at liberty to say, but maybe check she was referring to the deposit, and not the total amount.”

Mom: *To her husband.* “Now that I recall, dear, I do remember her mentioning the word ‘deposit’ a lot.”

I show them a couple of houses for sale on the window to our sales office for comparison, with some houses in their neighborhood going for between two and three million. They told me they bought their house in 1980 for less than fifty grand. 

Their daughter took another two years to save for her deposit, by which time the house she wanted had sold and house prices had jumped up in price again so she had to settle for something smaller, but at least her parents were more patient apparently!