In the ever-changing real estate market, have you wondered who is buying homes today?
The easiest way to classify homebuyers is to sort them by age. According to a recent study by the National Association of Realtors, 27 percent of homebuyers in 2011 were between the ages of 25-34. The balance of buyer segments was evenly divided at 19 percent each for 35-44, 45-54 and 55-64.
Buyers age 65-74 accounted for 10 percent of all purchasers and buyers under 24 years of age accounted for 4 percent.
This data indicates that the largest segment of homebuyers in the last year was born between the years of 1977 and 1986. This age group is commonly known as the ³Millennial Generation² and they are just beginning to flex their spending power. It is also a significant departure from the ³Baby Boomer² generation (born between 1946-64) that has driven the housing market over the recent years.
This new generation of homebuyers grew up with increased use and familiarity with communications, media and digital technologies so they are reshaping the way in which homes are sold. This NAR study reveals that 96 percent of buyers in this age category used the Internet in their home search, the highest penetration of any age category. However, 88 percent of this generation used a Realtor as an information source, which is the same penetration as their parents.
If you are a home seller, you can clearly see that your Internet presence, presentation and breadth of distribution are key points in marketing of residential real estate to this generation of homebuyers. The number of photographs supplied through online portals allows buyers to evaluate properties in advance and from afar. Quality video, giving a real-life presentation of a property is an excellent tool for attracting buyers as well. Community and school information are additional facts that buyers use as they narrow their selection.
If you are a prospective homebuyer, you can glean from this data the importance of engaging a Realtor in your home search. Not only your parents, but your peers also see the value in working with an experienced member of the Realtor organization, such as the Greater Chattanooga Association of Realtors.
On the flip side, the least used information sources for home searches for this age category were television and billboards at 4 percent each.
Homebuilders were used as information sources by 14 percent of purchasers and home books/magazines were used by 17 percent of Millennial Generation buyers.
Mark Hite is president of the Greater Chattanooga Association of Realtors