Survey of Coldwell Banker®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 Coldwell Banker®
Baby Boomer Real Estate Survey, an online random sampling of
363 certified Coldwell Banker 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 Coldwell Banker 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 Coldwell
Banker 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 Coldwell Banker 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 Coldwell Banker
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 Coldwell Banker® 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.
Coldwell Banker 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% |
Coldwell Banker 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 Coldwell Banker® 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 Coldwell Banker Previews
International, a leader in luxury home sales, and
conducted by Zoomerang Research in January 2005. Coldwell
Banker 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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