Das Market

One of the biggest markets in real estate now is the second home market. Anyone who reads any news knows there is currently a real estate slump. Chances are, it won't last and areas which are highly desirable for retirees are likely to find growing crowds as more of the boomers head for retirement.

Boomers are already buying second homes at a younger age than their parents did and they visit the second homes more frequently than their parents. According to the National Association of Realtors, 7 percent of baby boomers already own a vacation home. That number may go as high as 20 percent in a decade. With real estate prices currently lower than they have been, watch for the explosion as the boomer mentality suddenly leads to a lemming-like conclusion that now is the time to pick up that retirement home because the prices are as low as they are likely to be.

The trend toward a second home is likely to be accelerated by the shortage of skilled employees and the changing technology. Many companies and agencies have doubts about telecommuting. Those doubts can be overcome by the need to hire qualified people. And, throw into the mix the availability of the internet, cell phones, Federal Express service and the ever present Blackberry, and there may be a marriage of convenience for everyone. It may be that a good engineer, consultant, writer or analyst may be able to stare out at the ocean from a beach front condo while continuing to work part-time and bring in some extra money.

And, with a large concentration of federal employees in metropolitan areas like Washington, DC, Houston, San Francisco and Atlanta, many federal employees have accumulated a large nest egg in a home that has become very expensive. Why not sell it and move to the mountains or the beach or a small town with a house you can buy for cash with more amenities and lower property taxes?

Many boomers will opt for these alternatives because they can do it and because employers will need their services.

* Federal Office of Personnel article excerpt