Earlier this week I shared my prediction that first-time sellers will be a driving force in the coming market.
How big? Talking to Rainmaker real estate agents around the country, it’s clear many of them are ramping up their listing marketing for a new wave of first-time sellers. That confirmation got me interested to dig a little deeper. Exactly how BIG will this next big wave be?
Here’s what I learned from NAR statistics: In the last four years the percent of first-time buyers has continued relentlessly upward. In 2006, 36% of all buyers were first-timers. In 2007 that figure jumped to 39%, then in 2008 it increased to 41% and finally in 2009 first-time buyers set an all time record of 47% of all buyers, according to NAR research reports. 2009 beat the previous record high of 44% of all buyers being first-timers set in 1991.
What’s next? We expect these buyers will become a wave of first-time sellers in the upcoming market. The reason is twofold. First, these young buyers (average age of all first-time buyers is 30 years old, again according to NAR profiles) will become the most active move-up buyer cohort as their families grow. Second, many will move up with the instant equity they gained from buying at low distressed prices in recent years. Targeting this group with marketing designed to generate listings — and more dual commissions on the buy side — is a key strategy for successful agents.
Key question: How will you take advantage of this coming wave of young, first-time sellers to capture more listings in your market — or young-move-up-buyers-with-equity coming to find a home in your higher price area?
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