The two most important factors affecting real estate prices are the economy and demographics. The economy goes up and down, but demographics, particularly the baby-boomer generation, just keeps rolling along.
To gauge the impact of the baby-boomers on the real estate market, examine the following charts.
The first chart shows the baby-boomers in their trade-up home buying years. I fast-forwarded their birth dates by 43 years.
Look at 1989-1999, almost straight up. During this period the Desert saw phenomenal growth in sales and prices.
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The second chart rolls the baby-boomer yearly births forward 52 years, about when they are becoming empty-nesters and buying vacation homes.
They started buying vacation homes heavily in 1988-1989 and will continue to buy through 2015.
The third chart combines the top two birth lags with a 72-year lag for when the baby-boomers begin to buy retirement homes. The Desert is a favorite retirement area.
You can see that demand by the baby-boomers is going to be high and steady through 2031, with a small dip from 2017-2019.
The impact of the baby-boomers on real estate values has been and will continue to be tremendous. Also, put into the equation the high number of people moving to the area and the pressure increases again.
We are in a fortunate time when all the forces are aligned to produce steady price appreciation. But, you have to buy now.
ARDA report shows Baby Boomers buying second homes
(WASHINGTON) -- The American Resort Development Association has released its 1999 "State of the Industry" report, showing that home buyers increasingly are acquiring some kind of leisure residence as they get older. The ARDA report shows there are more than 1,600 resort developments in the United States and more than 2 million vacation property owners. In 1980, it was estimated that only 150,000 U.S. families owned second homes. Almost 32 percent of second home buyers were between the ages of 40 and 49, while another 23.4 percent were between 50 and 59. Some 22.8 percent of buyers were under 40 and about 21.8 percent were over 60. Most buyers also did not have extraordinarily high incomes. Some 32 percent made between $50,000 and $74,999 per year and 21.8 percent made less than $50,000. About 23 percent had incomes between $75,000 and $99,999 and another 23 percent had incomes in excess of $100,000.
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For information on a specific neighborhood or country club, give Greg Bauer a call at (800) 975-7720, or you can send an e-mail by clicking here.
Click on the city menu to the left for detailed trend charts for each community. Be patient, these are fairly large pages because of the graphs. Load time could be 15 to 20 seconds on a 56.6K modem.
Copyright © 1997-2006 by Information Designs
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http://Vegas-Report.com
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http://www.well.com/user/jaxson/
Hawaii
http://HawaiianRealEstate.com
Silicon Valley
http://SanJoseProperty.com
Santa Cruz County
http://SantaCruzRealEstate.biz