CEO's Message August
Category CEO's Message
Millennial buyers take on the luxury housing market
The millennial generation are making their presence known in the property market.
A recent Christie’s International Real Estate Report on the luxury property market highlighted this generation as one of the groups that are driving the increased sales volume in the luxury market.
Millennial buyers are those young consumers born after 1980 who have either received money from their Baby Boomer parents or perhaps they were in the tech area and have earned their own money. Either way they are becoming a noticeable force in the market.
Last year, our research showed that those millennials who were motivated to put their money in real estate did so, not just because it was a good investment, but because it is a tangible asset that they can enjoy and appreciate.
For these buyers, buying their first home is all about the experience and about enjoying what their wealth can provide for them. They spend a significantly larger percentage of their wealth on homes and want amenities such as open floor plans and high-tech, fully automated home environments.
Although the millennial buyer is mostly active in the entry-level luxury market, they are moving into higher price points if they have family money behind them.
Several luxury market experts have reported through Christie’s international network that there are more and more young buyers looking for luxury homes. They are attracted by average prices still below the market peak, low interest rates and are backed by the purchasing power of their Baby Boomer parents.
Another survey of wealthy individuals in the United States showed that 57 percent of wealthy young consumers are thinking about buying residential property in the next 12 months, compared to 21 percent of those aged 45 and older.
Author: Tyson Properties
