Factors Motivating Millennials to Buy Homes

Reasons Millennials are Buying Homes…Number 3 Will Surprise You!

A Harris Poll conducted on behalf of SunTrust Bank polled 18 to 36 year old’s who had just purchased their first home.

The average age of the Millennial buyer was 29.4 with an average FICO score of 724.
The loans were primarily conventional loan for $185,919 to purchase a home valued at $223,882.

What factors spurred these young people to decide to buy, and what were they looking for in their first home?
1. More Living Space – 66%
2. Building Equity / Wealth Building – 36%
3. Desire to Have a Better Space or Yard for a Dog (either for a dog currently owned or for a dog they hoped to acquire in their near future) – 42%
4. Marriage – 25%
5. Birth of Child – 19%

Looks like home buying has gone to the dogs!

Harris Poll on behalf of SunTrust Mortgage Infographic
A third of millennial-aged Americans (ages 18 to 36) who purchased their first home (33%) say the desire to have a better space or yard for a dog influenced their decision to purchase their first home, according to a new survey conducted online by Harris Poll on behalf of SunTrust Mortgage. (PRNewsfoto/SunTrust Banks, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Article researched and copy written by Laughing Fox Designs, providing results driven website development and social media actions to start-ups, small businesses and mid-size companies. ©2017 All Rights Reserved

Funneling Down to Your Real Target Audience

Using Research and Statistics to Find Target Groups

Looking at housing trends in a random segment of Atlanta can reveal much about the target audience of a secondary industry. From Real Estate Statistics, we can take a random month and see the following:

To a Realtor, depending on how many Realtors there are in this given area, this might indicate a wealth of opportunity. On the other hand, it may indicate the pickings are mighty slim.

To funnel down further, to the local Mortgage broker in that given area, specifically not one who is affiliated with a bank or major lender, like Chase Mortgage for one example, it provides a clearer scope.

Research Business Trends

Alpharetta: In January 2017, 124 (+0%) homes sold in Alpharetta at an average sale price of $372,053 (+8.1%).
The average days on market was 63, down from 70 a year ago. The number of new listings decreased 12.1% to 225, putting the number of total active listings in Alpharetta at 464 (+0%). In February, the average list price in this area rose to $494,168 (+4.2%), at a price per sq/ft of $158 (+9%). Metro Atlanta Home

To a Realtor, depending on how many Realtors there are in this given area, this might indicate a wealth of opportunity. On the other hand, it may indicate the pickings are mighty slim.

To funnel down further, to the local Mortgage broker in that given area, specifically not one who is affiliated with a bank or major lender, like Chase Mortgage for one example, it provides a clearer scope.

We can use statistics again to discover:

Only 25% of buyers who got mortgages turned to their agents for referrals to mortgage lenders; and the internet to investigate financing options. Zillow Group

This translates to:

124 homes sold in the area and 25% of these will use Realtor referrals to find a Mortgage company.

  • That calculates to 31 of those loans that you will not be focusing on, except in allotting a small percentage of your focus on the Realtor segment, in asking for referrals from them, as too much effort focused here, even if all agents referred only you, will give you only 31 clients.
  • More focus would be given to the 91 remaining new home buyers. As a Mortgage Broker, you would want to focus on this number, determining precisely who these new home buyers are, to understand how they are researching and finding their Mortgage Lender.
    • Who are most of these Buyers? Are they Millennials?
      • This group is tech savvy! Spend time researching / funneling down to their trends and you will find that they are researching Mortgage Rates, utilizing Mortgage Calculators and other tools to determine their options.

Are you in the zone with them? Offering the right tools?

  • What Social Media platforms are they using? At what time of day?
  • How do they respond to phone solicitations?

As you see, this is quiet an extensive process, but very focused and no doubt, statistically, you will come out ahead!

 

Article researched and copy written by Laughing Fox Designs, providing results driven website development and social media actions to start-ups, small businesses and mid-size companies.  ©2017 All Rights Reserved