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Younger and Older Baby Boomers Show Different Home Buying Trends October 11, 2011

Posted by admin1 in Real Estate.
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A survey polled more than one thousand three hundred brokers and agents. 87% of them concurred that baby boomers delay their home selling plans because of the state of the economy. However, this group still has a strong desire to own at least 1 home. 22% of agents polled said at least 50% of their clients in the group either already own or plan to own properties.

According to Jim Gillespie, baby boomers have been driving the economy in the U.S. for years and may be concerned about their next real estate investment choices. Gillespie said that financially secure baby boomers are actively pursuing options to buy retirement homes and are positioning themselves to take advantage of the current real estate market.However, a clearer picture emerges when the baby boomer generation is divided into 2 age groups. Younger baby boomers are between 47 and 55 years old while the older ones are between 56 and 64 years old.Here are some of the differences between these 2 groups.

34% of polled agents said younger baby boomers were interested in buying their second homes while 22% said the older ones had a similar interest.

31% said the younger baby boomers sell their present homes in search of larger ones, compared to 6% of the older generation.

The older generation is more likely to opt for downsizing than the younger generation. The survey reveals that the downsizing is not just driven by money-saving goals in spite of the state of the economy. According to 49% of the polled agents, many baby boomers downsize because they are more interested in a simpler lifestyle.

Fewer older baby boomers opt for single family homes than their younger counterparts. 47% of the older baby boomers are interested in either condos or townhomes while 27% are interested in active adult communities.

CBRE conducted the online survey among 1,333 of its professionals throughout the U.S. from September 6 to 15, 2011.