New Survey Says Boomers Still Bullish on Homeownership
Posted by: Admin / Category: Real Estate Guides
Recent surveys conducted by Coldwell Banker found that 90 percent of their real estate brokers believe that the high number of foreclosures in the marketplace combined with the sluggish economy has prompted many Baby Boomers to postpone plans to sell their homes. But despite the ongoing housing market woes, up to 75 percent of Americans of the Baby Boomer generation—which accounts for 79 million people—continue to believe that being a homeowner is a financially sound investment, meaning that the long-term prospects for the housing industry remain good.
However, according to the same brokers, until the employment environment improves, the backlog of foreclosures is reduced, and consumer confidence is strongly restored, the housing market will not enjoy much movement and Boomers will hold off on putting their family homes on the market and looking for smaller, downsized properties.
Difficulties in housing also means that more young adults are putting off buying, whether a new home in Houston or a resale home in Phoenix, and are living with their parents longer to help them save up for the larger down payments that will be key to a home purchase going forward.
The Coldwell Banker survey separated the Baby Boomers into two categories: younger baby boomers between the ages of 47 and 55, and older baby boomers between the ages of 56 and 64. The results found that a little under a third of the responding real estate agents reported that younger Baby Boomer clients currently have their homes up for sale with the goal of purchasing a bigger home, but only six percent of the old Baby Boomers are in the market for a bigger home.
Not surprisingly, the survey also indicated that older Boomers are twice as likely to be interested in downsizing; some because they are in financial trouble but most because they merely want to live more simply.
The survey was conducted online in September 2011, with more than 1,300 agents participating. Results from the survey were published in TheStreet.
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