“We’re in a ‘trade-down’ environment for the first time since the 1930s.”
Instead of trading up, selling a house and using the proceeds as down payments on larger houses, people are trading down into smaller places.
But this was expected right about now, regardless of the housing bubble. The boomers are starting to retire, and need smaller houses. I have heard for decades that this will happen.
The other thing that happens now is they start selling stocks instead of buying them = also regardless of bubbles, etc. The great upward pressure on the market while the boomers invested for retirement (sadly, sold on stocks by Wall Street marketing) will from now be downward pressure as they sell to meet retirement expenses.
Everything at the worst possible time for regular people. Wall Streeters, however, are enjoying the largest bonuses ever. I wonder if there is a relationship?