The real estate market has been on a hot streak for a while now, but as agents sit down at their desk and start their prospecting, the question asks, where should they be focusing. The answer, (whilst not exclusively) is to focus on Millennials (people born from the early 1980's to 2000's and here is why.
Millennials are property crazy:
The sudden movement of the market has bred a lot of interest from the millennials as they see property as a strong and secure long term investment. It is also apparent that millennials are willing to make sacrifices to get in to the property market which makes them an attractive group of serious buyers. Millennials have said they are willing to move home, work longer hours, and sacrifice their social life in order to get in to the property market. Therefore they make a very attractive group of buyers to focus on.
They have the support required to buy:
Most millennials who are property crazy are leveraging their existing relationships in order to get ahead. They are moving home, taking loans out from their parents and doing whatever they can to buy their first home. Because they are actively looking, they are worth investing time in to. Most of them have made sacrifices to buy a property, which are sacrifices they don't want to make for too long. (Moving home, living with mum and dad, having less privacy, and the social stigma with living at home) therefore they will act, and act quickly.
17% of the parents of millennial children expect to help their children buy a home within the next five years. That’s an increase of over 30% compared to the previous five years, when 13% of parents expected to provide home-buying assistance.
Younger buyers are the ones who are online (and the stats prove it)
Half of the millennials group in the US searched for property recently in the last month, growing 30% from the year before. And 36% visited properties online on their apps or mobile devices, an 81% increase from the previous year. Over 25% of millennials are finding their dream home and in fact purchasing after first engaging via a mobile device. (RISmedia)
They are the largest market and growing rapidly.
For the second year in a row, millennials represent the biggest group of home buyers in America, at 32% of the market. The shift in life goals and the order they do things has meant they are ready to buy, here and now. A lot of millennials are delaying marriage and children by almost a decade, as opposed to people 30 years ago. An LJ Hooker survey found that of 1017 people surveyed, among those intending to buy a property in the next two years, 78 per cent were aged 20 to 30, or in generation Y.
Parents bear the brunt.
Parents are taking a back seat to their own lives in order to get ahead. They are taking money out of their own savings in order to help their kids get ahead. Parents see it in some way a responsibility that falls upon their shoulders in order to help them get ahead and succeed in the property market.
So when prospecting, ensure to include the Millennials as a potential buyer when you meet them. Whilst it may not be all of their money going in to the home, this group are more determined than ever to get in to the market, and will do whatever it takes to crack the elusive first home.
About the Author:
Todd Schulberg handles all things marketing for Homely.com.au - Living and breathing property, Todd has a keen interest in the movements in the market and howagents can utilise new tools and technology in order to be more connected. Using all things social, Todd suggests different ways that agents can engage and think outside the square with their marketing approach.