Despite national reports citing the real estate frenzy is approaching a freeze, there is a growing demographic that the market will continue to heat: the baby boomers. As they pursue their quest for the ideal vacation or retirement home that analysts suggest that this large group of pensioners from stock, the dynamics of the market at a steady pace to keep.
The historical component of the last 50 years contributed to the profile of the baby boomers form. Absorb the examples of theirParents who experienced the tightening of the economic depression and rationing of World War II have traditionally been conservative Boomers spend money. Snapping on real estate, flipping properties and trading houses during the time their children were with boomers in the late 60s and early 70s was not normal. Everything changed with the red hot economy in the mid 90s. Riding the wave of the peak in the economy, the conservative spendthrift soon sophisticated investors. Althoughsizzling stock market with the dot-com bust of the late 90s, low interest rates with the changes to tax legislation gutted the real estate boom fueled the early 2000's. With children leaving school and retirement on the horizon, Boomers divert their investments in real estate.
New research shows that the number of second homes purchased between 2000 - 2004 almost doubled. The value of homes doubled as well, with the average increase was 55% at home in these 4 years. KeunwonChung, a statistical economist at the National Association of Realtors, says the baby boomers, especially those with above-average incomes, are primarily motivated the second home market. Chung quoted a reason why these boomers are snapping homes is to diversify their financial portfolio. Another reason is for their golden years position. Tax friendly retirement states such as Florida, Arizona, Nevada and have already witnessed explosive growth in both housing andAppreciation. Florida experienced a 25% increase in property prices last year acquired one of five such homes as a second home or investment property. Nevada's home prices by 17%, obtained with a comparable rate as investment property. The U.S. Census Bureau expects to continue this rate continuously and second home purchases from Baby Boomers are projected to reach 6.4 million units by 2010.
Most Baby Boomers are the luxury in their second home purchases. A poll conducted by Coldwell Banker, the Boomer generation "... luxurious homes and will want to remain active." Neil Howe, author and expert on generations theory, confirms this by stating to "Boomers live somewhere where they can remain active. They want to be close to cultural and intellectual hub that with the Community and Culture in touch . remain "And this generation can afford their desires. From the accumulation of wealth through the stock market, home'Justice and inheritance, along with the earning power of working in retirement years, boomers have more money than any previous generation of pensioners. Studies from Harvard, NAR and NAHB all agree that boomers will most likely use their cash and home equity to purchase multiple residences, based on prime location and amenities. While condos traditionally this requirement, a growing number of Boomers who filled turn now to Hotels, Condotels condo, and otherResort-style living different options.
Condo Hotels Appeal to Boomers, because they have the luxury and location, are the two most important ideals that keep boomers in search of their dynamic lifestyle markets. "Why buy a condo in the city, which sits empty for ¾ year when they can own a condo hotel, have to five-star facilities available to them are centrally represented in a top tourist destination, and receive rental income? "says Steven Roszell, owner of CondoHotels.com and HotelsForSale.com.Prices of condominiums, which the hotel management company, if the apartment is provided empty, is another main attraction of condo hotels for Boomers. Bob Waun of Vacation-finance.com, says that even though Boomers who want a resort-style living and luxury amenities, not all classes can afford. Waun says, "less than 20 million (26.5%) of U.S. boomers are wealthy enough to afford a whole ownership second home without rental income." But because of the potential rent, condo hotelsOffer "subsidized luxury that will have a growing selection to be among savvy boomers." Waun also believes sheer Boomer demand will motivate the condo hotel market. He quotes, "if only 1% of this generation demands condo hotel will be required as a second home option, 1.45 million units. The 96,000 condo [hotel units] per year, every year ...." For the next fifteen go years, the boomers will retire. Considering that the U.S. currently has only a handful of markets for condo hotel resorts, itit is probable that the demand for supplies to replace.
78 million U.S. baby boomers into retirement span of the next 15 years will no doubt have an effect on the real estate market. With the oldest of the Boomers Turn 60 this year, brokers are always reading their demand breast-feeding. "We have a large market cycles in the condo hotel market will see" says Roszell and CondoHotels.com is ready. " Although explosive appreciation and development is not likely, analystsnot agree that the boomers will be for us a lively property market.