According to the recent RE/MAX report, Generation X is taking over the recreational property markets in Canada this year, replacing the aging baby boomer generation as the most important buying force.

Generation X – what does it actually mean?

Over the years, social scientists have developed the manner of giving interesting names to the generations of the 20th century.  It were the various political and cultural attributes of the era when a certain generation was brought up that influenced its members and gave the generation a name.  Whereas baby boomers (those born in the period of mid 40’s late 50’s) were the most active commercial force until just a few years ago, most of them have entered or are just about to enter retirement. 

Nowadays, it is the children of baby boomers, named as Generation X, who are now 30 – 40 years old, who finally have enough money to acquire recreational property, however expensive it may be.
The change is particularly noticeable when you compare the first half of 2009 statistics to the 2008 results.  The trend moving towards recreational property buyers in their 30′s was observed by 74 percent of markets in this year’s surveys. The recreational properties sold ranged from waterfront cottages to resort condos.  This compares with just 40 percent in 2008.  Out of all the surveyed markets with recreational property, two thirds showed a decline in the amount of units sold in the period from January till April 2009.  But now, the buyer activity has grown with the beginning of the new cottage season, as we can understand from the results of many major centers.

The most important points of the report:

Supply is sufficient in most markets, but heated activity in the lower-end has resulted in limited inventory levels for entry-level property in 18 per cent of markets.  Older cottage owners, a lot of whom own their properties outright, are selling to younger buyers with families.  Some American cottage owners in Canada are taking advantage of the stronger dollar to cash out of the market.  There are some exceptions of course, but we can say that American buyers have mostly disappeared. One of the known factors in the marketplace is pent-up demand. For instance some buyers who had intended to purchase recreational properties in the second half of 2008 decided to delay the transaction till the next year. Older Canadians continue to purchase secondary homes in warmer parts of the U.S. such as Florida, Arizona, California, and Nevada. Generation X buyers are prepared to spend their hard-earned cash on holiday properties., but at the end of the day, they want to know that they’ve negotiated the best deal possible.

Tagged as: 20th Century, Attributes, Baby Boomer, Baby Boomer Generation, baby boomers, Buying, Canada, Decline, Enough Money, Force Generation, generation x, Generations, holiday, Interesting Names, Inventory Levels, property, Property Markets, Real Estate, recreation, Report Generation, Retirement, second home, Social Scientists, Statistics, Two Thirds, vacation, Waterfront Condos, Waterfront Cottages