First Time Buyers of Different Generations Shop Differently
I remember buying a car my first time and going straight to dealers to see my options, and recently leased a new car that I found online. Times change, people change, and generations approach things differently. If you're a Realtor, or a first time buyer, you might want to check out my business partner's (Greg Hancock) recent post "Are Realtors Behind the Times".
As Realtors, we have to keep up with every changing trends and technology. I personally love my Android, my apps, and texting is so convenient, I use E-fax converting paper docs into e-docs for my clients and simply send what needs to be signed. I use certified e-signatures... and this is engaging the Y Generation. However, I have clients closer my age and older, than prefer just email and voice mail.
First Time Buyers are Mostly Generation Y and X and Mobile.
The National Association of Realtors (NAR) published a report recently with statistics on different generations, and is good indicator that about two-thirds or 60% of real estate transactions are for Generation Y and Generation X.
NAR found that Generation Y has a substantial share of first time buyers at 31%, followed by Generation X and Boomers (both younger and older) at 30% each. The Silent Generation had the smallest slice of stat pie at 9%.
The percentage of first time buyers is dominated by Generation Y at a76%, and percentage decreases as age increases, the Silent Generation having only 2% of first time buyers, and are more likely to contact a real estate agent rather than go online to shop for homes and resources like Generations Y and X, and more than half of these two used mobile devices to search homes in their target area, we see about 50% usage on this website's responsive mobile site.
- The younger buyers of Generation Y (not all First Time Buyers) were mostly referred to their agent through a friend, neighbor, or relative, while older buyers (very few First Time Buyers) were more likely to use an agent again that they previously helped them with buying or selling a home (Our Realtors are some of the most skilled and educated in the industry and receive lots of referrals from other clients.).
- Overall 88 % of recent buyers financed nearly all purchases. Of that, 97% of Gen Y buyers financed compared to only 55% of Silent Generation financit.
- Among the generations, Gen X (29 percent) is the largest group who are recent home sellers followed by both Older Boomers (22 percent) and Younger Boomers (21 percent).
- Younger sellers are more likely to use the same real estate agent or broker for their home purchase than older sellers, as they are typically moving closer to their previous residence.