What drives homebuyers in 2015? Where are they coming from and where do they want to go? And as I’m sure you are asking yourself right now, why does any of this even matter so long as my house sells?
Well, any home seller who understands what type of buyer he/she will ultimately sell their home to, can then fix and adjust the home to make it appeal to the highest amount of buyers, raising its market demand.
The National Association of Realtors recently released their Home Buyer and Seller Generational Trend report, outlining, among many other topics, the general outlook of United States homebuyers.
Generation Y, those aged 35 and under comprise the largest share of home buyers at 32 percent, more than all baby boomers combined. Their average income is $76,900 a year. It should be noted that the median age for these home buyers was 29, meaning that those home buyers are generally closer to 35 than to 18 when they are ready to make a purchase. Sixty nine percent of Generation Y buyers are first time buyers and 39% of them were driven to purchase a home for the desire to finally own their own home. For buyers aged 33 and under, 59% of them are purchasing a home to leave a rental situation.
Generation X, those aged 35-49, comprise 27% of homebuyers in the United States. On average, they make $104,600 a year. Generation X buyers, in general, are shopping for more than just themselves. Generation X buyers are usually shopping for families. As the presence of children in the home peaks for a buyer aged 35-49, homes aiming to sell to Generation X’s will need to be child friendly, with additional bedrooms and possibly a bonus room.
As age increases, homebuyers are far more likely to already be homeowners. Below age 33, homebuyers are generally leaving a rental situation. For homebuyers over 50, more than half owned their previous residence. Whether that means they are buying a second home, are downsizing or have other reasons to move, these buyers will generally be more seasoned, discerning and will expect more from their home.
Young boomers or people aged 50 – 59, comprise 15% of the buyer’s market. They are likely to move for job relocation or to downsize their home. Younger boomers make an average of 96.6 k per, the first age group where median income goes down from the previous generation as oppose to up.
Older boomers, people aged 60 to 68, move for retirement or to be closer to friends and family. As age increases, the rate of owning more than one home also increases.
If you have considered selling your home in the past, you may not have considered this question: What type of buyer will my home more than likely sell to and how can I make it even more attractive to that person? Once you have found that answer, you are well on your way to listing a highly sought after home.