The Super Bowl kicks off the start of our real estate market, and as we begin the new year expect to hear buyers and brokers bemoaning the lack of inventory.

The demand side of the housing market remains upbeat and strong, but the supply side continues to struggle and appears to be getting worse as the state unsold inventory index remains about half the long run average of 6 months.

Why is the inventory of homes for sale so low?

Fewer housing units are being turned over in recent years. At the peak in the late 1970s, 10 percent of homes in California were listed on the market on an annual basis; housing turnover in recent years has dropped to 4.5 percent.

Homeowners are just not moving as often as they were in the past, especially Baby Boomers 55+, an age group that does not need to move as much as the upwardly mobile 20s- 40s.

Many homeowners have locked in mortgages with attractive low rates from the past 5 years, and don’t want to give them up. The prospect of higher mortgage rates and property taxes on a new purchase have many deciding to stay where they are for now.

The California Association of Realtors is trying to get an initiative on the ballot this November that will expand the provisions of Proposition 90, a program voters approved in 1988 that allows homeowners 55 years of age or older to transfer the property tax base of their principal residence in one county to a newly purchased or constructed replacement residence in another county.

Only a limited number of counties participate in Prop 90, and you can only take the transfer once. The new initiative would relax geographic restrictions and allow multiple moves with a transfer of property taxes. Watch this column for updates.

We may start to see more inventory as the children of the Greatest Generation finally decide that as they move into their 70s and 80s, it really would be easier to embrace a lifestyle free from the worries of home maintenance.

Health and safety issues have many children trying to encourage parents to downsize away from the work and expense of maintaining a single family residence that no longer serves their needs. This changing of the guard is just what we need to meet the housing demands of the up and coming wave of Millennial homebuyers.

Seniors listen up … it’s a great time to sell!

Adriana Donofrio Podley Properties Glendora (626) 926-9700 adrianad@podley.com