COLDWELL BANKER REAL ESTATE SURVEY REVEALS HOME BUYING DIFFERENCES bETWEEN OLDER AND YOUNGER BABY BOOMERS
While Majority of Agents Report Economy is Delaying Boomers’ Plans to Sell Homes, Many Are Still in the Market, Especially for Investment Properties
PARSIPPANY, N.J. (Oct. 11, 2011) – A new survey from Coldwell Banker Real Estate finds that 87 percent of 1,300 agents and brokers polled agree that the economy is delaying baby boomers’ plans to sell their homes. That said, the desire to purchase and own a home, or more than one home, remains strong in this demographic cohort, especially so in the investment market segment. Another 87 percent of respondents said they have baby boomer clients who already own or are looking to own an investment property, including 22 percent of agents who report that at least half (50 percent) of their boomer clients either own or are looking to own such properties.
“The baby boomer generation has driven the U.S. economy for years, and like many Americans, they may be anxious about their next real estate decision,” said Jim Gillespie, CEO of Coldwell Banker Real Estate. “I know baby boomers are a very diverse group and cannot be described in generalities, but our survey clearly indicates that those boomers who are financially secure are actively seeking to buy their retirement home, or a second home, and they are taking advantage of the opportunities and value available in today’s market.”
The survey also underscored that by dividing boomers, which account for 79 million Americans, into two age categories, a more dynamic picture of the real estate market emerges. Here are the additional findings:
Younger Baby Boomers (Ages 47-55) | Older Baby Boomers (Ages 56-64) | ||
Second Homes: | More than one-third (34 percent) of agents say younger baby boomers (ages 47-55) are interested in purchasing a second home. | 22 percent say older baby boomers (ages 56-64) are interested in purchasing a second home. | |
Looking For Larger: | 31 percent of respondents say that younger baby boomer clients are selling their current home and looking for a larger. home. | Compared to 6 percent of older boomers. | |
Downsizing: | 80 percent of agents say that older baby boomers are more likely to want to downsize than younger baby boomers (52 percent). Although the economy has impacted boomers, the reason for downsizing is not only about the desire to save money. According to the survey, 49 percent of agents say the primary reason boomers want to downsize is because they desire a simpler lifestyle, while only 28 percent said the leading reason boomers are downsizing is to save money. | ||
Single Family Home or Other Options: | Younger baby boomers are much more likely to prefer a single family home than older baby boomers (82 vs. 47 percent of agents agree). | For the older baby boomers, agents say about half are (47 percent) are looking for a townhome or condo. 27 percent of agents say their older boomer clients prefer an active adult community. | |
Survey Methodology: Coldwell Banker Real Estate conducted an online survey among 1,333 Coldwell Banker real estate professionals across the United States about housings trends for baby boomers. The survey was fielded between September 6 and September 15, 2011.
*Some answer percentages in the above may not total 100 percent, if only the most popular responses are listed. In other cases, respondents had the option to check all that apply, which may mean that percentages total more than 100 percent.
Some might say that the Baby Boomer Generation isn't going to be buying homes or selling homes but, honestly, I would have to say just the opposite. In this 'time of opportunity' where interest rates are low and prices are low, some will see this as a time to add to their retirement 'nest egg' with investment property so they can maintain their current lifestyle as the survey indicates. At the same time, some might be very comfortable with what they have and actually have too much of a home to maintain so, they're wanting to downsize into smaller living space to stretch their income further. Either way, it has a positive impact on the real estate economy and the future of real estate ownership as we all know it. I get excited at the opportunities out there for homeowners in all facets of the market; whether it's a first time home buyer or the person wanting to take advantage of the lower price to buy the dream house or the person wanting to sell their home to downsize. Either way, the market, contrary to what the news will lead you to believe, is alive and the heartbeat is real.
It's a great time to be in real estate!!!
