What are the 2024 real estate probabilities?
Who will be selling? Who will be buying?
And more importantly, how should you adjust your marketing efforts to assure that you’ll be in front of those buyers and sellers?
Who will want to sell their homes in 2024?
When mortgage interest rates went from 3.2% on March 2, 2022 to 4.95% in April, 6% in September, and 7.07% by November of 2022, homeowners with mortgages became reluctant to sell without a compelling reason. And who could blame them? I certainly wouldn’t want to give up a 3% mortgage loan in favor of one at 6 or 7%! Faced with that situation, people didn’t move just because it might be fun.
As a result, smart agents have been marketing to those who DO have a reason to sell. That would include couples in divorce, those facing corporate or military relocation, and heirs who don’t wish to keep houses they’ve inherited.
By the way, if you’re interested in how interest rates have fluctuated over the years, visit this page on Bankrate. You’ll learn that there were times in the 90’s when we welcomed 7%!
Now, perhaps things are changing. According to AARP, 51% of Boomers are set to downsize. Even if they have a mortgage now, they aren’t particularly worried about the higher interest rates. After all, many have built enough equity to pay cash for that smaller home. In fact, records show that about half of older boomers (68 to 76) buy without a mortgage. In addition, some boomers will be moving to retirement communities where they’ll become renters.
2024 real estate probabilities point to homeowners 58 years and older selling the most homes.
According to the National Association of REALTORS(R) 2023 Home Buyers and Sellers Generational Trends Report, Baby Boomers and the Silent Generation currently make up 60% of home sellers.
Doesn’t it stand to reason that they should be on the receiving end of a good deal of your marketing efforts? I think so.
Remember, however, that it is unwise to make assumptions.
The youngest boomers are only 58 years old. Instead of downsizing, some of them are no doubt ready to buy or build their dream homes.
In my opinion, that means your letters should not make reference to downsizing except as one of their possibilities. And there are a few possibilities. Some might not want another permanent home at all. I do know a few who have sold their homes, invested in a motor home, and hit the road.
Prospecting to boomers could double your fun.
If you’re prospecting to boomers who may want to downsize (or upsize), you’re also prospecting to boomers who might want to search for a new home while their current home is being sold. These are beautiful candidates for double transactions.
If you make yourself invaluable to them as they move out of their current homes, they’ll trust you and want to keep working with you to find their next homes.
What can you send to boomers?
Letters that suggest the many reasons why they might want to move – and the many benefits they might enjoy when they do. And of course, you’ll offer your assistance, especially with learning the value of their current homes before making that decision.
You can, of course, write your own letters. But if you don’t write well or if you’d prefer not to spend the hours necessary, you can use the ones I’ve already written. Choose from:
- Senior Relocation Letters,
- Empty Nester Prospecting Letters,
- Letters to Residents of Adult Communities
You might even want to prospect to those who own second homes/vacation homes. Here are their letters.
Don’t forget that people of all ages use social media.
In fact, some senior citizens are practically addicted to it. So start writing about the many reasons why boomers might want to move. Hint: You can use some of the text from the prospecting letters. Tell stories about boomer clients of yours who moved and are having a fine time with hobbies, grand-kids, or travel.
And of course, advertise the boomer homes you’ve listed – just to remind them that you’re working for your clients!
What are the 2024 real estate probabilities for buyers?
This could be an interesting year with regard to buyers. According to Zillow’s 2023 Consumer Housing Trends Report, first time buyers made up 50% of the buyers last year. But now, if large numbers of boomers are downsizing, will both groups be in search of the same houses?
Is there conflict ahead – or not?
If boomers have the ready cash and young first time buyers do not, will a good number of young buyers be out of luck? Or, since according to NAR the average age of first time buyers has now risen to 36, will the first time buyers be looking for 3 and 4 bedroom homes while the boomers will prefer smaller homes?
We’ll all have to wait and see, but in the meantime…
How can you reach those 2024 home buyers?
Services such as Cole Realty Resource can provide you with the occupancy status of homes in a given neighborhood if you want to prospect to those in single family homes. You can also prospect to apartment dwellers.
Use your website to gather prospects by offering a special report on home buying. My first time buyer letter set includes a flyer/special report entitled “Are you tired of paying rent?” It asks a series of questions that, if answered “yes” mean the reader is ready to become a home buyer. Of course, you could write a similar report.
But since the first time buyer set includes 7 letters plus the flyer for only $49, my guess is that you have more profitable ways to spend your time.
Be sure to add a link and promote the special report on your social media sites. Then back that up with posts about your listings and about happy home buyers that you’ve helped.
Once you have names and email addresses, your auto responder can send prospects the remainder of the First Time Buyer letters, the Nurturing Internet Buyer Letters, the Letters to Those Who Plan to Buy Soon, or even the Why Home Buyers Need Their Own Agent letters. All of these sets offer advice that will help those potential buyers make good decisions. And of course, they all offer your assistance.
Once you’ve helped first-timers own a home, stay in touch with them!
In last week’s post I reminded you that past clients are your personal goldmine, and that first-time-buyers are especially valuable. With some exceptions, younger buyers are more social and thus more apt to recommend you to friends who need an agent.
Use these letters to give them advice they can use as they become homeowners – while reminding them of your exceptional service.
Make sure that you’re well informed.
If there are first time buyer programs available in your city, county, or state, be sure you know about them – and write about them. Be able to explain them to prospects who ask.
You should know the terms of the programs, along with who qualifies and whether only certain properties qualify. If that is so, you should know those parameters. Take time to call a variety of lenders to see what they have to offer. Then take time to sit down with them go gain understanding of their programs.
The more you know, the more you can help buyers and sellers in this transitional year of 2024.