Zillow's Millennials, Technology Sucks, What Election? - Quick Hits: Volume 1
Quick Hits: Volume 1
Zillow just released their 2016 Consumer Housing Trends Report. I must say, the report is good and extremely comprehensive. The results, though, should not be that surprising but for some reason they are to many. According to the report, half of today's home buyers are under the age of 36 which means... yup, Millennials!
Some people are surprised by this but I'm not sure why. The Millennial generation is the largest generation and the "elderly" side of it (late 20s, early 30s) are finally starting to have children - it's about time! The statistic that is scaring most people is the use of the internet for research among Millennials prior to working with a Realtor, if they use on at all. Don't run for the hills yet, 70% of Millennials report using an agent but some do fear this number will decline. This should not come as a shock because there are not that many Millennial real estate agents yet. The median age of a Realtor is 53 and only 5% of Realtors are under the age of 30. Something for Brokers to think about with their recruiting efforts.
Technology vs. Real Estate Industry
Technology in the real estate industry has lagged behind other industries for a long time. This is because Brokers and industry leaders like MLS boards, local and state associates have been dismissive of technology. Even the cover of RIS Media's latest publication has the headline "Technology SUCKS... but it doesn't have to."
I hear this all the time when I'm out in the field; "Oh technology, it never works the way it should." "Technology is just getting in the way - it's not that necessary." Oh yeah? Well, why don't you give me your smart phone for a day and then tell me how you feel about technology. For those of you who are anti Zillow and third party listing portals and lead generation websites, I'm sorry to say but we are the reason why those things exist. The industry's lack of innovation is why a company like Zillow has achieved so much success.
With a generation that loves technology becoming a significant portion of the home buying population, I think the real estate industry's point of view on technology is going to change. You might even start to see brokerages developing game-changing technology. At least I hope so.
It's an Election Year?
The perfect cover for a slower market. "Well, I think people are holding off until after the election." I'm not going to dispute that this could be the case for some people. Every four years I can hear people discussing at the back of coffee shops and restaurants, "if so-and-so gets elected, I'm moving to Canada." Great! Another home for us to list! I'm sure the real estate agents in Canada are excited as well.
I'm not going to get into who should be our next President but I will say that elections are fun because it appears that more people start to pay attention to important things, like the economy. There will be another recession coming within the next few years - don't worry it won't be that bad - and I hope that the real estate industry will be better prepared because agents and brokers are paying more attention to government policies and actions that impact real estate markets.
There is good news. No matter what the economy looks like, a lot of people still need to move and that is where we come in. We are real estate experts here to guide clients no matter their financial situation. If are a good agent, you should be excited about a looming recession because you have already done your homework on the economy and your expertise will be needed more than it is in a booming economy. Not only that, part-time agents who thought they could make a quick buck will probably exit the industry. Maybe that's a good thing.
Have a great listing day.