January 08, 2016
Real Estate Statistics for 2016
Every new year, we take it upon ourselves to publish a list of real estate stats and figures that we think...no, we know, that realtors will find handy in the coming year.
Since the winter tends to be a quiet time for the real estate sector, it's a great time to take a look over the statistics and brainstorm some ways that you can utilize them to your advantage in 2016.
We gleaned our statistics from a variety of sources, from Inman (Inman), NAR, Trulia, and Placeter and it sure looks like technology rules all when it comes to real estate in 2016. But it doesn't mean that you should pack up your bags and stop reaching out personally to your potential clients, you just need to find another outlet to do so.
We've now entered the era of social media. And in this era, where 72% of all online adults are active on Facebook, it's time for you as a realtor, to get active on Facebook too! Are these numbers convincing enough for you to turn more towards technology for your business?
And the numbers say..
Grab a pen and paper and get ready to start brainstorming your fresh ideas for the new year. Hopefully these stats will inspire you to try something new in 2016 when it comes to marketing your listings.
Our top picks for the most important real estate statistics in 2016:
- 80% of all home buyers are searching online - Tweet This Stat
Not newspapers, not driving down streets and looking for 'For Sale' signs. No, buyers are looking online for their future homes and they want to know every detail possible about the home before they go see it in person.
- Gen. Y accounts for 68% of all first time home buyers - Tweet This Stat
That's more than half! Understanding the Gen. Y and millennial market will be key in 2016, especially as they're getting ready to buy their first homes.
- 83% of all home buyers want to see pictures of the property online - Tweet This Stat
Thanks to social media, we've become a largely visual culture. Buyers are spending more time online doing research and want to see or take a virtual tour of the homes they're interested in before they even consider going to see it in person.
- 52% of all home buyers used an iPhone in their home search - Tweet This Stat
It's time to optimize your mobile presence! More and more buyers are using their phones to research and if they land on your site and find it too clunky to navigate from their phone, they most likely will not take the time to give it a second look from a desktop...and you'll be quickly forgotten.
- Agents expect 49% of their leads will come from referrals in 2016 - Tweet This Stat
Don't lose hope. There's still much to be gained from personal referrals and former clients sending their friends your way.
- 91% of realtors use social media to some extent - Tweet This Stat
We're left wondering, why isn't this 100%? These days social media is ubiquitous and it's a free marketing tool for realtors to utilize to have a far wider reach than they ever could have with traditional marketing.
- 73% of all buyers say they would use their agent again or recommend them to a friend - Tweet This Stat - Again, this only solidifies that technology isn't out to squash all personal engagement between realtors and clients. Home buyers are still looking for a personal touch
- Only 9% of realtors use social media to market their listings - Tweet This Stat Another mind-blowing stat. Why is this so low? While we're not advocating to use social media as the sole place to market your listings, it's one of the best (and not to mention cheapest) methods for getting the word out there on the properties you're selling. If you already have a personal presence on social media, it's worth running some tests and sharing out your listings on your personal pages, you never know the traction you may get.
- 42% of buyers' first step was looking online for a home - Tweet This Stat
We can't stress this enough. The market has shifted and more and more buyers are turning to their computer and mobile devices to do their real estate research. While it doesn't mean that they won't need or want an agent, they most likely will find you and their future home through online research.
- 88% of first time buyers are buying homes through an agent - Tweet This Stat
Just because these first time buyers are looking online for their homes, they'll still turn to an agent when it comes to making the big decision. Keep in mind these first time buyers are most likely millennials or long term renters and will need as much guidance in the home buying process as possible.
- 33% of first time buyers are first researching online - Tweet This Stat
This seems to be the trend, no? Our recommendation once you get settled into creating an optimized online presence, try your hand at creating some content geared towards first time buyers. Whether you're blogging or sharing quick advice on Twitter, you can make yourself the go-to source for first time buyers in the market.
- 31% of millennials looking to buy a home want to buy within 2 years - Tweet This Stat
If they're not buying this year, they will be soon and your best bet is to start getting prepared for the deluge. Millennials will be online and researching heavily in the time leading up to their home purchase, giving you a great excuse to optimize your web and social media presence.
- It will be 35% cheaper to buy than rent in 2016 in America - Tweet This Stat Translation, why rent when it's cheaper to buy your own home? Be on the lookout for an exodus by long-term renters who are seeing the light and ready to make an investment for themselves.
Decoding it all
So what does this mean for you as a realtor? Certainly that building up your online and social media presence will be key in the coming year to successfully reach the up-and-coming millennial market, but also key to keep up with the growing number of people looking online. Plus, with the market shifting towards more affordability in buying rather than renting, there will be more people out there looking to buy with a big boost in first time home buyers who had been long time renters.