|
The newest RE/MAX report found out that Generation X became the most important buying force on the Canadian market with recreational property, replacing the aging baby boomer generation. What exactly is Generation X? Over the years, social scientists have developed the practice of giving funny names to the generations of the 20th century. It were the different political and cultural attributes of the era when a certain generation was brought up that influenced its members and gave the generation a name. The baby boom generation (this name refers to people who were born from mid 40's till late 50's), now already retired or preparing for it soon, were the most active one on the market until recently. At the same time, the children of baby boomers named as Generation X, now in their 30’s or 40’s, have finally got the financial ability to purchase recreational property at almost any price. You will notice this change particularly when we compare the statistics of the first half of this year with the ones from last year. Waterfront cottages, resort condos and all other types of recreational property products are now very popular among thirty-something buyers. This has been reported by 74 percent of markets surveyed this year. This compares with only 40 percent in 2008. Out of all the surveyed markets with recreational property, two thirds showed a decrease in the number of units sold in the period from January till April 2009. However, a lot of major centres are now reporting an increase in buyer activity since the cottage season began. Highlights of the report: While the general supply seems to be reasonable in most markets, the most limited inventory levels are what concerns entry-level products (18 percent of markets report this), as most of the buyer activity was taking place in the lower-end. Younger buyers with families are now purchasing properties from older cottage owners, who in many cases own their properties outright. Many American cottage owners in Canada are taking advantage of the stronger dollar to cash out of the market. The number of American purchasers has recently declined nearly to zero. Many purchasers who were planning to purchase a recreational property in the second half of 2008 rather delayed the purchase to 2009. This is a market factor known as pent-up demand. Florida, Arizona, California, Nevada and other warmer parts of USA are the places where older Canadians still continue to demand secondary homes. Purchasers from the X Generation are now mostly ready to spend their hard-earned dollars on on vacation properties. But at the end of the whole transaction, they want to be sure they've gotten the best possible deal out of it.
Related Articles -
generation x, baby boomers, real estate, buying, recreation, second home, vacation, holiday, property, Canada,
|
