Across All Buyers, Millennials Have the Most Purchases

Across All Buyers, Millennials Have the Most Purchases

RECBL - Real Estate News

In housing, generations intersect regularly. Who’s downsizing? Who’s driving the market? Who’s trading up?

What generation is impressing on the market most today? Millennials, according to the 2018 Home Buyer and Seller Generational Trends study, recently released by the National Association of REALTORS(R) (NAR). Millennials are accounting for 36 percent of purchases, ahead of baby boomers at 32 percent, Generation Xers at 26 percent, and the Silent Generation at 6 percent.

"REALTORS(R) throughout the country have noticed both the notable upturn in buyer interest from young adults over the past year, as well as mounting frustration once they begin actively searching for a home to buy," says Lawrence Yun, chief economist at NAR, of the study. "Prices keep rising for the limited number of listings on the market they can afford, which is creating stark competition, speedy price growth and the need to save more in order to buy. These challenging market conditions have caused-and will continue to cause-many aspiring millennial buyers to continue renting unless more Gen Xers decide to sell, and entry-level home construction picks up significantly."

Millennials are buying homes with higher values, but the same square footage: $220,000 for 1,800 square feet, versus last year’s $205,000 for the same size, reveals the study. They are close to family and friends, as well, and prefer to reside near them-an attribute in common with other generations.

"The sense of community and wanting friends and family nearby is a major factor for many homebuyers of all ages," Yun says. "Similar to Gen X buyers who have their parents living at home, millennial buyers with kids may seek the convenience of having family nearby to help raise their family."

Additionally, 52 percent of the millennials in the study have at least one child-an indicator of the likelihood of a move-and another 52 percent purchased in the suburbs. Eighty-five percent purchased a single-family; just 2 percent went with a condominium.

"While there is an overall trend among households young and old to migrate towards urban areas, the very low production of new condos means there are few affordable options for buyers, especially millennials," says Yun.

All generations enlisted a real estate professional for their transaction, according to the study. Ninety percent of millennials are most likely to purchase through a REALTOR(R), with 75 percent believing they can educate them about the process. Ninety percent of millennials are most likely to list with a REALTOR(R), as well, and at least 84 percent of every other generation partnered with a REALTOR(R).

"Especially in today’s fast-moving housing market, consumers of all ages want a REALTOR(R) to guide them through the exhilarating, yet nerve-wracking experience of buying or selling a home," says NAR President Elizabeth Mendenhall.

For more information, please visit www.nar.realtor.​



Jason Grace is AZ Social Realty's content editor. Email him your real estate news ideas at jason@cashbuyerslists.com.




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Better Your Business: Become a Real Estate Resource for Seniors

Better Your Business: Become a Real Estate Resource for Seniors

RECBL - Real Estate News

NARs Seniors Real Estate Specialist(R) designation draws attention to an aging demographic. As a real estate agent, you may be focused on wrangling in younger clients-millennials making that first big home purchase, or those looking to jump from their starter home to their forever home. But real estate professionals fixated on younger clients alone are missing out on a major demographic that needs attention: seniors.

"Our country’s population of older residents has grown significantly over the past several decades," says Chris Read, a broker/owner in Illinois.

Read notes that according to the United States Administration of Aging, the number of residents who are 65 and older will more than double by 2040 to represent 20 percent of the nation’s population.

"To meet the special housing needs of our maturing population, REALTORS(R) need special knowledge and expertise to appropriately counsel clients with major lifestyle changes associated with seniors," says Read.

But what exactly are these senior-specific housing needs? Think tax and legal matters, retirement challenges, exploring assisted living options and understanding how to search for properties that allow independent older clients to age in place.

How can real estate professionals work to meet these needs? The answer is the NAR Seniors Real Estate Specialist(R) (SRES(R)) designation, which provides the knowledge and resources needed for agents to offer a better level of counseling for senior clients.

"The SRES(R) designation provides the awareness and knowledge of issues facing seniors, in addition to a multitude of resources for client solutions and assistance," says Read, who was named the 2016 REALTOR(R) of the Year by the Illinois Association of REALTORS(R).

"Knowledge is power," notes Read. Understanding the issues 21st century seniors face will place you ahead of your competition, draw in more business, and allow you to better serve your senior clients by customizing your services as needed. "Many housing and service organizations will market contact info for the SRES(R) member. It’s a symbol for competency, awareness and skills in navigating a senior through the process of relocating."

To earn the SRES(R) designation, a licensee must be an active member of the National Association of REALTORS(R) (NAR). Following that, you must become an active member of the SRES(R) Council, and complete the two-day designation course-available online or in a classroom. "I completed the course online within one week, stopping and starting as my schedule permitted," says Read.

Read is far from the only real estate professional investing in the senior population. The Senior Services activities of both the Mainstreet Organization of REALTORS(R) and the Illinois Association of REALTORS(R) have been making large moves to support seniors in housing. With a membership of 17,000-plus, the Mainstreet Organization of REALTORS(R) is the largest local association in Illinois, and its Senior Service committee is comprised of REALTOR(R) members maintaining the SRES(R) designation whose business focuses on servicing the senior demographic, explains Read.

The committee’s goal is to provide education, share resources, create tools, promote advocacy and give support to seniors and their communities. In the past, the organization has sponsored senior expos and seminars on powers of attorney, senior housing options, de-cluttering, senior fraud protection and preparing for the future.

Through these services, the organization not only supports their senior community members, but directly connects them with SRES(R) designees who can meet their needs, driving business for the agents, and a higher quality of aging for the community’s seniors.

For more information, please visit www.seniorsrealestate.com.



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Using Generational Preferences in Your Property Marketing Mix

Using Generational Preferences in Your Property Marketing Mix

RECBL - Real Estate News

The following information is provided by the Center for REALTOR(R) Development (CRD). It probably comes as no surprise to you that communication preferences vary considerably across generations. This is largely a result of what communication method each generation grew up with and got used to. Understanding these differences can offer insights into working better with cross-generational colleagues or clients. While there can be wide variation within generational groupings, and we shouldn’t fall into the trap of believing in rigid stereotypes, there is, however, enough of a pattern to generate some useful guidelines:

The Silent Generation, those born between years 1900 and 1945, are typically disengaged from technology. Their signature product is the automobile; for communication, they prefer face-to-face, letters and memos.

Baby boomers are those born between the years 1946 and 1964. Their signature generational product is the television. They are less formal in their communication than the Silent Generation, but still prefer doing business in person or via conversation on their cell phones.

Generation X, those born between 1965 and 1976, grew up during the advent of the personal computer. Their preferred mode and style of communication is direct and immediate; therefore, they will typically appreciate emails over phone calls and in-person meetings.

Millennials are complete digital natives for whom the signature product is the smartphone. They tend to prefer digital and informal methods of communication such as text, Twitter or Instagram. If something is important, though, they will appreciate an email or a voicemail that they can review later.

With these preferences in mind, when you are planning a property listing and marketing strategy for a seller, you will want to take into account the market economics (Is it a buyer’s or a seller’s market?) that the property is in-and the geographic and demographic realities of the area (What kind of buyers do you want or will you be able to attract?).

According to NARs Profile of Home Buyers and Sellers, for all of the generational groups described above, online search and real estate agents consistently ranked No. 1 and No. 2 as their most-used methods of finding a property. Furthermore, mobile apps, online video sites, yard signs, and open houses come in at the No. 3 through No. 6 spots for all the groups (but in a different order of preference for each). Other methods that don’t rank as high as these, but which can be reliable under the right circumstances, include: print newspaper ads, home builders and printed "home books."

Based on this research, it’s safe to assume that technological and non-technological methods for finding and selling properties are being used in a blended, overlapping, or complementary way. The key when you are serving seller clients is to devise a marketing strategy for the property that has the right mix of marketing activities so that you minimize wasteful activities and maximize effective ones. You’ll need a different marketing toolkit for different homes and different markets and different circumstances.

Below is a comprehensive list of the marketing activities you may have at your disposal. The specific ones you choose to use, the way you (re)combine them, and the relative emphasis or resources you devote to each will have an impact on your success marketing the property within its particular market:

In many ways, coming up with a marketing plan is an act of creativity based on practical experience, much like creating a recipe of your own or building something without instructions. The more skilled you are, the more you will "just know" how.

Even if you already have a good feel for what might work, there is tremendous value to documenting and tracking your efforts over the long term, even down to the property level. In the same way that you should be tracking ROI (return on investment) for your own business prospecting (client acquisition) activities, you should also have an established process for tracking ROI for each of the different tools in your property marketing toolkit. By tracking ROI for each of the different tools in your property marketing toolkit you gain clarity and visibility, when and why you have success, so you can add this information to your base of experience.

There is nothing better than putting information and actions to paper so that you can see patterns emerge and see something that you didn’t even realize was there. All of this can help inform and add precision and cost-effectiveness to future marketing planning.

To learn much more about generational preferences within property marketing plans, tracking ROI for your success with seller clients and their properties, and seller representation overall-please consider checking out the education, benefits, and resources offered by REBI and its SRS Designation. In October, the featured 25% OFF course at the Center for REALTOR(R) Development is the Seller Representative Specialist (SRS) Designation course, which is the core requirement toward obtaining this credential.

For more information, please visit the online learning portal from NAR's Center for REALTOR(R) Development (CRD) and the Learning Library. Here, real estate professionals can sign up for online professional development courses, industry designations, certifications, CE credits, Code of Ethics programs and more. NAR's CRD also offers monthly specials and important education updates.

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Inside the Mindset of Gen X Buyers

Inside the Mindset of Gen X Buyers

RECBL - Real Estate News

Not to be overshadowed by the recent focus on millennial and boomer homebuyers, Generation Xers are making something of a buying comeback in today’s real estate market. Here’s why this trend is significant.

Members of Generation X (ages 37-51) have been somewhat sidelined when it comes to coverage of the social and financial impacts of the different generations. But recent studies are finding that those who came of age in the 80s and 90s represent a higher percentage of new homebuyers than in years past and are gaining a noted foothold in the real estate market.

Coming of age in the real estate market
According to industry sources, millennials are the generation buying the largest share of property at 35 percent.

Following right behind, however, are members of Gen X, accounting for 28 percent of home purchases-up from 26 percent last year.

Forbes reports that the increase in home purchases by Generation X is especially significant in that this sector has the highest average amount of student debt among the generations-$30,000-compared to an average balance of $25,000 for millennials. Industry sources also report student loans are a contributing factor as to why Gen Xers delay buying a home longer than their millennial counterparts.

What are they looking for?
According to industry sources, the following factors might influence the real estate comeback among Gen Xers. These factors may also help determine the kinds of homes these buyers are looking for.

Members of Gen X are typically:

• In their peak earning years
• The generation making the most money, with a median annual income of $106,600
• More likely to have families
• The largest generation with kids still living at home

While they may have taken longer to purchase homes, the generation in between the famed boomers and millennials is on its way to a real estate comeback. With more income and more children living at home, Generation X may be looking for bigger homes at a higher price point to accommodate their family and lifestyle needs.

Although millennials and boomers continue to generate coverage as buyers and sellers in the real estate market, the middle generation, Gen X, is coming into its own and is at its peak as more members join the ranks of American homeowners.

Source: HSA Home Warranty

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Effective Ways to Communicate With Each Generation of Homebuyers

Effective Ways to Communicate With Each Generation of Homebuyers

RECBL - Real Estate News

It isn’t all about phone calls anymore-and we promise: knocking on strangers doors isn’t the status quo, either. Your clients prefer to be communicated in a variety of different ways, often depending on the generational attributes that distinguish us all.

It’s hard to bridge the gap between baby boomers and millennials. The time has come where the real estate industry has begun to embrace the new and largest generation of homebuyers.

Because of this, we thought we’d create a quick cheat sheet so you can better connect with your ever-growing and evolving sphere.

Traditionalist - Born Before 1945
Traditionalists, or Maturists, are now well past the normal retirement age. They shy away from technology and put a high importance on safety, security, and capital preservation. Why? They grew up in the shadow of troubling times, namely the Great Depression and World War II. Communicate with them through print and face-to-face.

Baby Boomers - 1946-1960
Generally, since this gen adapted to online communication technology later in their lives, baby boomers prefer to talk face-to-face or on the phone. They were influenced by rock music and the Cold War, and all of them probably remember exactly where they were when Neil Armstrong took his first step on the moon. The best thing you could do is pick up the phone and call them.

Gen X - 1961-1980
This gen is a bit more technologically advanced and receptive to new innovations than the baby boomers are. They’re sandwiched between two much larger generations and often are raising kids while taking care of their now elderly parents. They embrace new communication channels like email and Facebook; in fact, emailing is favored and the easiest way to get in touch with them without interrupting their day.

Millennials - 1981-1995
At 75.4 million, millennials are now the largest generation yet, which means the largest generation of homebuyers. This crew grew up with technology at their fingertips. In their childhood, they saw cell phones surface, and in their young adulthood were using laptops and tablets every single day. Online communication became a thing in all aspects of their lives: family and friends, romantic relationships and work. They’ve not only been heavy users of social media; they created it. They prefer real-time conversations on platforms like WhatsApp, Instagram, Snapchat, Skype, or simply iMessage, which is why they expect answers to questions almost instantly. If they don’t pick up when you call, try sending them a text. Chances are they won’t listen to the voicemail you left anyways.

This might all seem overwhelming or annoying (or both), but creating clear lines of when to use which communication styles for your sphere will mean more bang for your buck (and time). After all, there’s a fine line between helpful and bothersome. You don’t want to rub people the wrong way. A set of communication guidelines will help you settle into the role as a clients trusted advisor quicker than ever before.

For more information, please visit www.moxiworks.com.

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Boom, Baby Boomers, BOOM! One of America's Most Lucrative Demographics

Boom Baby Boomers, BOOM! One of America's Most Lucrative Demographics

With more than 75 million people fitting into the American baby boomer demographic, it is easy to understand why this group would be important for REALTORS(R) to understand.

Even more eye-popping to REALTORS(R) is the fact that more than 70 percent of baby boomers own homes, and will be looking to make homeownership changes really soon. This spells big opportunities for REALTORS(R) looking to serve the burgeoning baby boomer market over the next 10-15 years.

NAR takes a deep dive into marketing to baby boomers in its Field Guide to Working With Baby Boomers, which features, among many others, an article from Forbes Magazine entitled "7 Reasons Why Marketing to Baby Boomers Is Unique," which includes the following insights:

1. Baby boomers have money to spend. As opposed to those who grew up in the Great Depression, baby boomers are quite affluent. According to a Nielsen report, they account for $230 billion in sales of consumer-packaged goods like coffee, diet soda and magazines, and make up 70 percent of the nations disposable income. Baby boomers will also inherit $13 trillion in the next 20 years.

2. Baby boomers invented the suburbs. Suburban home development occurred simultaneously with baby boomers ability to make down payments on a mortgage and their desire to leave urban marketplaces. They still live in the suburbs, where many now own 100 percent of their own homes.

3. They plan on living in a better house as they grow older. Seventy percent of baby boomers think their current house is not the best that they can get and they are looking to upgrade. Baby boomers are setting new trends that defy traditional definitions of a "relaxed" retirement. Instead, they are diligently looking for newly constructed homes where they can continue to pursue an active lifestyle surrounded by the latest amenities.

4. Their brand loyalty is tenacious. Once they find a brand they like-one they grew up with-they stick with it; Volkswagen cars, Levi jeans, Harley Davidson motorcycles, Club Med, Noxzema, Leggs. This means that finding out what your baby boomer clients interests are will help guide you toward homes that best meet these trends, and, ultimately, increase the chances of closing a deal.

5. Remembering Woodstock - The famous music festival was a countercultural event which symbolized that the baby boomers were not going to be defined by their parent’s morals and lifestyle. They were going to think and act for they themselves-and they still want to be thought of that way. The least hint of patronizing the baby boomers will flatten any marketing campaign.

6. Baby boomers do use social media, but in a different way. As you develop your social media strategy for baby boomers, be aware that while a 20-year-old is posting photos of their night out on Instagram or Snapchat, a baby boomer is more likely to post a photograph of a new grandbaby or the new RV they just purchased on Facebook. It’s the more "traditional" venues, such as Facebook and Twitter, that are used by baby boomers, so keep your focus there.

7. Baby boomers are not old. Baby boomers do not want to be reminded of their age or be considered as old; rather, they want to be encouraged about their accomplishments and their future. They want to hear about the opportunities that lay before them to experience new chapters in their life.

Other helpful articles in the field guide include "Myths About Boomers and Real Estate," "9 Digital Marketing Strategies to Woo Baby Boomers," and "Baby Boomers Not Showing Any Signs of Downsizing." In addition to marketing resources for the baby boomer market, the field guide also provides tips on reverse mortgage basics, housing trends for the 50+ demographic, related websites relevant to this audience and links to eBooks and other resources.

View the entire Field Guide to Working With Baby Boomers resource from NAR.

To learn much more about how real estate professionals can best serve baby boomers and other 50+ client segments, please consider checking out the education, benefits, and resources offered by SRES(R) Designation. This entire month of September, the featured 25% OFF course at the Center for REALTOR(R) Development is the Seniors Real Estate Specialist (SRES(R)) Designationcourse, which is the basic requirement toward obtaining the SRES(R) Designation.

A version of this article originally appeared on NARs The Members Edge blog. The Members Edge is a blog for new members to learn all about the benefits provided by the National Association of REALTORS(R) (NAR). It is the go-to resource for everything from real estate ethics to tips for interacting with foreign buyers. The information provided in The Members Edge cultivates a capable and educated community of REALTORS(R).

For more information, please visit onlinelearning.realtor.

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