With online portals threatening to eventually make the real estate agent less necessary, it’s more important than ever to prove our value. Real Estate trends can show us how to succeed with buyers and sellers if we pay attention to them and adjust accordingly.
There are incredible reports put out every year, such as the buyer and seller trend reports from NAR (National Association of REALTORS®). They’ve done the hard part for us, the research. Now it’s up to us to listen.
In this article, I’m going to post my takeaways from recent reports. I’ll post sources at the bottom of the article and may estimate or average where it makes sense to do so. Look for my additional thoughts, tips and tools following the icons.
Home Buyer Trends
First Time Home Buyers make up 35% of all home purchases.
This is a growing trend.
Have you considered a purposeful approach to attracting first time home buyers? With digital platforms and demographic targeting, reaching these home buyers is easier than it ever has been before. NAR says 66% home buyers aged 36 and younger are first time home buyers. We know this demographic is online and plugged in.
Blogging is a great way to reach first time home buyers. Knowing that this is a tech savy group, finding a way to solve their problems and answer their questions online is a smart strategy.
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Buyers 36 years and younger make up 34% of home purchases.
The largest age group of home buyers is the 36 and under group.
How do we appeal to this group? We can assume based on the first stat that many are fist time home buyers. We covered how to generate first time home buyer leads in this blog post. We must approach them through technology and through value.
This generation also feels like they have a better pulse on the real estate market than real estate agents do. They know how to get the data themselves, and they do. If you ask them, most will say our value is in the contracts and negotiation, not before.
What’s worrisome in that note is that portals trying to rope in buyers and sellers that can do everything online, have a chance to steal away our customers if our value is in the contracts!
I say it’s time to start asking this group questions and really begin understanding what’s valuable to them. And then, we need to deliver it.
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The highest income of home buyers goes to the generational group of 37 to 51.
Consider carefully the different lifestyle, needs, and challenges in this age group.
This age group may have more teenagers and place emphasis on high schools. With higher incomes, they may also understand communities and their amenties such as golf, boating, shopping, walkability and so forth.
On a personal note, I’m 46 as I’m writing this blog post and have a 14 year old that started high school this year. My 25 year old is grown and moved out and last year I moved this year to specifically be near the high school my daughter wanted to attend.
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Sixty-six percent of buyers have been married couples.
It’s important to learn the art of satisfying each of the people that make up a couple. As we know, opposites attract and learning what makes each tick in the process will help us provide a better service. What’s important to one will often be different than the other.
In addition, one may be more into the financial aspects and investments of the home, while the other cares more about the energy saving features and green living. One is passionate about the garage, and the other about the island in the kitchen.
17 percent of home buyers in the recent past were single females.
I was personally surprised and impressed by this statistic. Another nice niche to carve out, I recognize here. While a smaller pool of buyers, it’s a very specific one. I’d be curious on what they are buying in my own market. NAR reported that most of these singles were in the 62 to 70 age group.
I would imagine this group is going to care about safety, amenities, quick access to shopping, dining, beauty, health.
On a side note, As a single woman, I moved last year. I insisted on a gated community and the freeway access was a key component in my decision. I don’t care to drive more than I have to and I’d like quick access to where I do need to go.
38 percent of home buyers had children < 18 living in the residence.
This group is going to care about things like home size, number of bedrooms, community amenties like parks, and schools.
62 % of purchases in the 37 to 51 age group have had at least one 18 year old living in the home.
This again goes back to my point about high schools being an important topic in this age group. On the younger side, many will have youth about to enter high school. This group may also consider multi generational living to help the college student stay at home saving everyone the costs of living at the school. In Las Vegas, we have multi generational homes that have a smaller living space within the house itself. These are growing in popularity for the college student, parents, grandparents, and even adult siblings of the home owners.
The age group 37 to 51 is reported to be the most racially diverse with 21% identifying themselves as Hispanic/Latino, Black/African American, or Asian/Pacific Islander.
Understanding the current real estate trends will help us succeed with buyers and sellers. Real Estate is local and is not a one size fits all. We can carve out a nice niche and do a great business if we focus on providing value, solving problems, and informing our potential customers and clients.