Baby Boomers influence much of the country?s economy and they will continue to shape the housing market, according to a report by Analysis and Forecasting, Inc. and the University of Southern California?s School of Policy, Planning and Development. The report, ?U.S. Housing Trends: Generational Changes and the Outlook to 2050,? pinpoints several factors driving the marketplace including retirement, aging and relocation. Here at Claremont Realty Group we have also identified new trends in our market area that are fueled by the purchasing power of this generation.
Toni George, president and broker of record at Claremont Realty Group, has noticed some common home buying patterns tied to the Baby Boomer generation, those born from 1946 to 1964. ?From what I?ve read about housing trends in the northeast, and based on our own observations of the real estate market here in the Summit area, changes are definitely happening among the Baby Boomer demographic,? she said. ?Instead of having one large home and staying in there for 40 or 50 years like their parents did, today?s Boomers are looking at buying a smaller home or condominium in this part of New Jersey and a secondary residence either in New York City, Florida or down at the shore, especially towns like Spring Lake and Sea Girt.?
This phenomenon of purchasing a second home is based on lifestyle requirements, George explains. ?If 60 is the new 50, and 50 is the new 40, Baby Boomers are keeping that perception alive as reflected in their housing choices,? she said. ?They are more health-conscious and more active than their parents were. This age group spends their free time swimming, fishing, taking yoga classes, jogging, biking and golfing, so they want to live somewhere that accommodates their busy lives.?
?As children grow up and leave the nest, Baby Boomers will typically sell their large home but maintain their ties to New Jersey in a smaller property,? George said. ?This can be a more modest single-family home, a townhouse or condominium. The next step involves purchasing a second residence in a different part of the state or country.?
George says she typically sees buyers looking for a second home in one of three places: Manhattan, the Jersey Shore or Florida. ?As a boutique agency that does everything to help our clients, we are able to assist buyers in the area with their future home purchases, even if they seek a new home out of our immediate area. We have personal relationships with a select group of fellow real estate agents in different parts of the country to refer our clients to, based on over 20 years of experience and networking. These hand-picked agents will deliver the same white glove service our clients have come to expect from Claremont Realty Group.?
For buyers interested in the Jersey Shore, Claremont Realty Group has a Vacation Homes Division specializing in Monmouth County properties. ?We have helped many buyers purchase a vacation home in towns like Sea Girt, Avon-by-the-Sea and Spring Lake; these locations are an easy drive from the Summit area if you are just going away for a weekend or you want to check on your home during the winter months. Lots of residents are happily surprised to find that so many of their friends already own a home in one of the Monmouth County beach towns we represent.?
According to George, this generation of buyers would rather invest in a second home than put their money into a low-performing 401K or the unpredictable stock market. ?We see many of our clients in their 40s, 50s and 60s who are thinking about long-term gains in the real estate market, especially while mortgage rates are still so low and prices are competitive. For them, the time is right to buy a vacation home they can eventually use as a retirement property.?
Second home buyers were the topic of the National Association of Realtors? 2012 Investment and Vacation Home Buyers Survey. Their findings showed that even in a challenging economy, vacation home sales rose 7% during 2011, and investment home sales surged by over 64%. Vacation homes accounted for 11% of transactions in 2011, and the median buyer age was 50 years old. Most purchased a home about 25 miles from their primary residence, although 30% of second home purchases were located over 100 miles away.
Buyers seeking a luxury condominium in New York City or a vacation property in Florida can be assisted by one of the many referral agents Claremont works with. ?This has worked well for many of our clients who aren?t sure about how to get started in a market area they are unfamiliar with,? George said. ?We can confidently refer trusted agents in Manhattan and Florida who are highly professional and familiar with every aspect of the real estate market in their area. This saves buyers all the legwork involved in finding an agent who will look out for their best interests.?
As market trends change and generational buying patterns come and go, one thing will remain constant. ?At Claremont Realty Group, we have our finger on the pulse of everything as it happens, and can report our findings to buyers and sellers with a sense of immediacy. We offer Baby Boomers? and buyers in every age group? the information they need to make sound decisions about housing and investing, whether it?s a property located right down the street or in another part of the country entirely.?
For more information contact a sales representative at Claremont Realty Group by calling 908-343-2122 or visit claremontnj.com.
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