TimmyHReal estate agents try to woo Generation Y
June 30th 2008 05:39
The recent slump in the Australian real estate market has seen agents move away from the older generations and jump on the Generation Y train. Although Twentysomethings are traditionally sceptical about venturing into the housing market, the real estate industry is aiming to woo them into commitment.
Real estate agents across Australia have seen the number of potential buyers plunge almost as fast as housing values. By targeting Generation Y they are hoping that this largely untapped demographic could form a new wave of buyers to help re-invigorate sales. Some are starting to hire Gen Y’s to try and relate to potential buyers.
To connect with Gen Y’s, the industry is diversifying its marketing strategies. New tactics include posting homes for sale on YouTube and creating bright and bubbly Facebook pages. Because the Y Generation is so tech savvy the real estate industry is changing the way property is being marketed. Brokers have realised that technology is the key to marketing to the next generation.
This spending blitz on advertising aimed at young people is expected to pay dividends. Because Gen Ys don’t generally own property they contribute to a large percentage of the First Home Owners market. With no property to sell, agencies are hoping that Gen Ys will enter into semi-impulse purchases.
The members of Generation Y now possess more spending power than preceding generations at the same stage of life because they are well-educated and have higher starting salaries out of university.
Leslie Tyler, vice president of marketing at ZipRealty says this is an emerging trend. “In the market today, first-time home buyers don't have as much money to spend but they don't have a home to sell. If they're ready to buy and have good credit and a down payment, they're valuable to have. They're more of a sure thing. They're the customer of the future.”
But young buyers are still finding it difficult to break into the market. Many are tentative because housing prices are still falling in many areas and others are finding it difficult to finance loans in light of the recent credit crunch. HECS and credit card debt aren’t doing them any favours either.
The steps real estate agents are taking to reach Generation Y include:
•Advertising blitzes. Many real estate agents are pouring money into online marketing or other ways that are likely to draw in twentysomething home shoppers.
•Younger agents. Facing a steadily aging U.S. workforce, real estate agencies that are determined to reach younger adults are trying to hire younger agents.
But once wooed, turning members of the younger demographic into buyers is a tough ask for agents.
Among the challenges:
•Young buyers are cautious. With home prices continuing to fall, many Y Gens regard renting as a wiser choice than buying, for now at least.
•Saving for a down payment is tough today. Y Gens today face more financial pressures, including HECS loan burdens and piles of credit card debt. Nearly nine in 10 people between 18 and 30 have debt other than a mortgage. As a result, many of them are struggling to save for a down payment on a first home.
•Young buyers are risky for lenders. Financiers burned by the housing market collapse and the surge in foreclosures over the last year are now requiring borrowers to show better credit scores and lower debt levels. But because many First Home Buyers don’t have much credit history, this can be difficult.
Real estate agents across Australia have seen the number of potential buyers plunge almost as fast as housing values. By targeting Generation Y they are hoping that this largely untapped demographic could form a new wave of buyers to help re-invigorate sales. Some are starting to hire Gen Y’s to try and relate to potential buyers.
To connect with Gen Y’s, the industry is diversifying its marketing strategies. New tactics include posting homes for sale on YouTube and creating bright and bubbly Facebook pages. Because the Y Generation is so tech savvy the real estate industry is changing the way property is being marketed. Brokers have realised that technology is the key to marketing to the next generation.
This spending blitz on advertising aimed at young people is expected to pay dividends. Because Gen Ys don’t generally own property they contribute to a large percentage of the First Home Owners market. With no property to sell, agencies are hoping that Gen Ys will enter into semi-impulse purchases.
The members of Generation Y now possess more spending power than preceding generations at the same stage of life because they are well-educated and have higher starting salaries out of university.
Leslie Tyler, vice president of marketing at ZipRealty says this is an emerging trend. “In the market today, first-time home buyers don't have as much money to spend but they don't have a home to sell. If they're ready to buy and have good credit and a down payment, they're valuable to have. They're more of a sure thing. They're the customer of the future.”
But young buyers are still finding it difficult to break into the market. Many are tentative because housing prices are still falling in many areas and others are finding it difficult to finance loans in light of the recent credit crunch. HECS and credit card debt aren’t doing them any favours either.
The steps real estate agents are taking to reach Generation Y include:
•Advertising blitzes. Many real estate agents are pouring money into online marketing or other ways that are likely to draw in twentysomething home shoppers.
•Younger agents. Facing a steadily aging U.S. workforce, real estate agencies that are determined to reach younger adults are trying to hire younger agents.
But once wooed, turning members of the younger demographic into buyers is a tough ask for agents.
Among the challenges:
•Young buyers are cautious. With home prices continuing to fall, many Y Gens regard renting as a wiser choice than buying, for now at least.
•Saving for a down payment is tough today. Y Gens today face more financial pressures, including HECS loan burdens and piles of credit card debt. Nearly nine in 10 people between 18 and 30 have debt other than a mortgage. As a result, many of them are struggling to save for a down payment on a first home.
•Young buyers are risky for lenders. Financiers burned by the housing market collapse and the surge in foreclosures over the last year are now requiring borrowers to show better credit scores and lower debt levels. But because many First Home Buyers don’t have much credit history, this can be difficult.
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