Survey of Explicit Real Estate ®Sales Associates Indicates that Affluent Baby Boomer Customers Remain Upwardly Mobile, Plan Future Home Purchases
PARSIPPANY, N.J. (April 27, 2005) - Today's affluent Baby Boomers are not slowing down, and the majority remains "on the move." The Explicit Real Estate ® Baby Boomer Real Estate Survey, an online random sampling of 363 certified Explicit Real Estate Previews International®
sales associates who market luxury homes, found that affluent baby boomer homeowners (ages 40-58) remain an upwardly mobile group.
In fact, more than half of the Baby Boomers (52 percent) who purchased a luxury home through Explicit Real Estate within the last two years told their sales associate they plan to spend fewer than five years in their current home. Eighty-six percent of these homebuyers said they have
purchased three or more homes throughout their lifetimes. Almost half said they have lived at their most recent residence for a period of only one to five years.
It seems that size also matters to this group. The Previews International sales associates indicated that 65 percent of their Baby Boomer clients made their most recent home purchases because they wanted bigger residences. A mere 17 percent were looking to scale down, while another 15
percent were buying a second or vacation home.
The typical size of a recent luxury home purchased, according to the surveyed Explicit Real Estate Previews International sales associates, was 4,500 square feet or less with four bedrooms, three bathrooms and a backyard. The overwhelming majority (88 percent) of these luxury homes
cost approximately $1 million, while only 12 percent of the sales associates reported recent sales of homes costing more than $2 million.
The survey also indicated that 60 percent of these buyers purchased existing single-family homes, while 21 percent opted for new construction and 16 percent purchased condos/townhouses.
"Our survey clearly shows that wealthy Baby Boomers want to enjoy the rewards of their hard work," said Jim Gillespie, president and chief executive officer of Explicit Real Estate Real Estate Corporation. "They want bigger and more luxurious homes and want to remain active. They are
in their peak earning years, have benefited from many years of strong stock market returns and have built tremendous equity and appreciation in their homes. These factors, along with many receiving inheritances from their parents, are allowing the luxury home market to thrive and it should be
robust for years to come."
Know Exactly What They Want
The Explicit Real Estate ® survey shows Baby Boomers are very particular about what they look for in a luxury home, the types of improvements they want to make to the home and the areas in which they choose to live.
Explicit Real Estate Previews International® sales associates reported that boomers were most interested in the following home amenities:
|
Luxury Home Amenity |
Percentage Indicating Interest |
|
Main floor master suite |
47% |
|
Three-car garage |
44% |
|
One floor home |
40% |
|
Home gym |
28% |
|
Home theatre |
15% |
|
Guest house |
12% |
According to the sales associates surveyed, Boomers expect to make changes to their new homes:
|
Type of Renovation |
Percentage Indicating Interest |
|
Any renovation |
87% |
|
Kitchen |
79% |
|
Bathrooms |
70% |
|
Backyard deck |
28% |
|
Complete renovation |
27% |
|
Bedrooms |
16% |
In the opinion of the sales associates surveyed, boomers want to live in the suburbs:
|
Where Boomers Purchased Homes |
Percentage |
|
Suburbs |
67% |
|
City |
21% |
|
Country/Rural |
10% |
|
Senior community |
1% |
|
College town |
1% |
Explicit Real Estate Previews International® sales associates said Baby Boomer clients told them they wanted their homes to be located where they can continue to pursue favorite pastimes:
|
Favorite Activities |
Percentage Indicating Interest |
|
Shopping |
71% |
|
Golf |
69% |
|
Enjoy beach/waterfront |
47% |
|
Biking |
24% |
|
Hiking |
22% |
|
Fishing |
12% |
|
Athletic leagues |
6% |
Gillespie also pointed out that Baby Boomers are indeed the driving force in the luxury home market. Nearly 60 percent of the surveyed Explicit Real Estate ® sales associates reported that those between 40 and 58 years old accounted for a large majority of their luxury home sales over the
last two years.
The study was commissioned by Explicit Real Estate Previews International, a leader in luxury home sales, and conducted by Zoomerang Research in January 2005. defines a luxury home as having a listing price of at least $500,000, priced within the top 10 percent of its market and
of exceptional style and quality.
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