[1]When you’re looking to buy or sell a home, it always helps to have some inside scoop. According to a survey conducted by John Burns Real Estate Consulting[2], the motivating force behind the housing recovery will be young families headed by 31 to 45 year-olds. The National Association of Home Builders reported that the latest data (2009) showed that 38% of new home buyers were under 35, and another 24% were between 35 and 44. The numbers were nearly the same for existing home buyers—roughly 60% of existing home buyers were 44 years old or younger.
Paula Monthofer, a Realtor with Realty Executives in Flagstaff, AZ noted in a recent article in the Arizona Daily Sun[3] that the steady increase in interest rates is partly responsible for encouraging these buyers to get serious. Knowing that a one point increase in interest rates can impact a mortgage by tens of thousands of dollars, “they kind of got serious when they saw the interest rate go up for seven days in a row,” Monthofer concluded.
This market segment isn’t only looking for a good deal, however, there are other items on their priority list when they consider prospective homes. The John Burns survey revealed that design and distinctiveness rank high on their list. And although the average size of new homes is shrinking, these buyers definitely have an eye out for homes that leave them room to grow as their family grows and changes.
Across the board, regardless of age group, 70% of the survey respondents agreed that they would be willing to pay $5,000 more for a home that has eco-friendly, energy efficient features. Other features that would earn a price premium included dark wood cabinets, separate tub and shower, a fireplace in the living room and open floor plans.[4]
Knowing that the rise in interest rates is putting a little more pressure on buyers combined with having a better understanding of the desires of over half of prospective home buyers (the under 44 year olds) gives prospective home sellers a new edge, allowing them to tweak and stage their home to feature those characteristics known to appeal to this market and work the economy to their advantage.
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