Home buyers and sellers are plentiful and diverse, and it is impeccably the same as their range of preferences when it comes to choosing their homes. They belong to several generations of families across Australia (and also the world, where it’s relevant) and each individual brings a unique set of preferences. It becomes the responsibility of a vendor’s and buyer’s advocates respectively to cater to these demands as they are presented.
A review of the year so far
The highest percentage of buyers belongs to the community of Generation Y or Millennial. This involves the age group of 18 to 35. Over four years, this section of society has been involved in 35 percent of the total number of properties bought. Most of the homes have been single family detached houses and a survey shows that suburban locations are most preferred. Among these, about 45 percent have children under the age of 18 while the rest are either married or unmarried couples.
The age groups of 36 to 50 constitute about 28 percent of the homes on the market while the senior citizens constitute the rest. Generation X, or more specifically the age group of 36 to 50, has been found to be the most ethnically and racially diverse community involved in buying homes. They are also at the peak of their earnings which means, they also constitute the most expensive homes bought. The last group of buyers is usually comprised of those who have retired and are looking for a small home to live in peace. They also include those with larger families, as well as younger individuals taking care of aging parents.
The largest number of sellers, statistically, belonged to ages above 50 followed by the ages 36 to 50 and the senior sections respectively. About 77 percent of the sellers were found to be married couples with the highest concentration occurring in the age group of 36 to 50.
Potential for more purchases
The first step as usually taken by the majority of home buyers was to browse online for potential properties that have been advertized. The entire search process took no longer than ten weeks on an average. About 89 percent, on an average, of all buyers finalized their home buying process through an agent. Surveys show that the most common reason for going through a buyers’ agent is to expand their choices when searching and also, in many cases, to negotiate with the seller on their behalf.
The advantage, as told by the buyers, of using an agent was that the buyers could understand the purchase process. Referrals are the most widely used method of selecting a buyers’ agent for their home purchase.
The prices keep getting better
Financing a home purchase involves a huge number and statistics show that about 60 percent of them paid off the down payment using their savings. About 38 percent used proceeds from the sale of a previous residence to finance the same.
About 13 percent of all buyers have expressed that saving up for down payments was the most difficult step and generally belonged to the age group of 35 years and younger. 66 percent of all home buyers used loans to pay off their down payment. Surveys show that about eighty percent of all buyers acknowledge that a home purchase is an ideal investment.
Faster and cost effective deals
Statistics show that about 87 percent of all buyers belonging to the age group of 36 to 50 years have been very satisfied with the processes involved in the purchase as conducted by a buyers’ agent. The agents have conducted negotiations on behalf of the buyers and ensured cost effective investments.
Almost all of the purchases that have involved the use of agents have wrapped up their negotiations and other processes involved in the purchase in no longer than 6 to 8 weeks, with the statistical median averaging on 10 weeks. All buyers in the age group above 60 have expressed complete satisfaction in using a buyers’ agent to facilitate their home purchase.
Turning over to the new generation
Home buyers under the age of 35 have expressed their struggles in coming up with the necessary funds for down payment. This is mostly on account of student loans, and others which include imposed levies involved in their education, jobs, and debts. Home purchases were most common among married couples with unmarried couples following up a close second. Stag purchases are least common in this age group. More than 80 percent have opted to use a buyers’ agent to finalize on their new home.
Tany Clarck has been writing blogs professionally on real estate and property purchases for over 2 years. He conducts extensive surveys every year on several homes, both bought and sold, as well as agents who have facilitated the purchase or sale of the same in that year. He is a regular contributor for a few real estate magazines and also actively involved with property purchase and selling in Melbourne to stay updated on the latest trends in the estate market.
July 20, 2016