Thursday, April 14, 2011
Younger Generation Predicted to Turn Real Estate Market around
A new study was released in March by the National Association of Home Builders states that, “Generation X –young families and adults ages 31 to 45 – are likely to lead the home buying recovery as it gets underway”. Gen X as they are referred to makes up 32% of the home-buying age population. They are not the largest group (Baby boomers make up 41%) but they are the most mobile. They are fully engrossed in careers and need to expand to accommodate larger families. When surveying 10,000 potential buyers in 27 metro areas, between 85-89% said now is a good time to buy!
What does this Generation of home buyers want?
More space! Most are growing in careers and families and want a bigger home than they currently live. In addition to space inside they want more space on their property. Although amenities seem like a hot button item, 46% said they would prefer a home in a larger lot versus 21% looking for a neighborhood in walking distance to everything. Finally 70% stated they would be willing to spend an additional $5,000 for a green home. Another very important feature that helps makes the sale to this individuals-design. They are willing to pay a premium for things such a modern architecture and dark wood cabinets.
Strategy Changes for Selling to Generation X
This younger generation of real estate purchasers is not the same as the generation before them. They have grown up in a world of skepticism and work independently to see what they want and what they should pay for it. They are willing to do research and utilize technology to get answers. What do you need to concentrate on when selling a property to this group?
Most important difference between a younger generation of buyers versus their older peers is technology. Technology is very important to these innovative individuals. Often referred to as the “MySpace generation”, the term is widely misleading. They may spend time on social networking and entertainment but they also turn to the virtual world for information. They are inundated but they absorb exactly what they need and are prepared when making a purchase decision. As a seller or real estate agent, remember to utilize the virtual tools that draw this generation in and respond quickly before they move on to the next prospect.