Why focus on the Senior Market?

Two key industry and demographic changes are simultaneously occurring that makes targeting the senior market essential to the near and long term future of every real estate agent:

Uber Realty is Coming!

The Real Estate industry has not changed since the MLS was founded in 1908. There are at least six companies now creating apps for handheld phones and other devices that are designed to completely replace real estate agents in the home buying and selling process. The term for this approaching seismic change in the industry, as coined in a Real Estate license continuing education seminar put on by Career Compass (November 2015), is "Uber Realty"

"Just as Uber is changing the taxi industry, and web-based companies such as Airbnb are disrupting the hotel industry, the real estate industry is another industry that’s vulnerable to information-driven disruption. It is very likely that the real estate industry will be one of the next industries to be hit by the changing tide of the digital age, here’s why:"

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The actual form and ultimate impact of "Uber Realty" is subject to debate. What can't be denied is there are significant changes to the industry coming in the next five to ten years brought on by the continual wave of technological advancement and the industry's own trend towards commoditizing it's value with agents' and broker business models that compete on a lowest commission (lowest price) basis.

The exploding senior market is here now!

At the same time the baby boom generation is reaching retirement age with as many as 10,000 people reaching retirong each day.  This rate is projected to continue over the next eighteen years.

This demographic will create huge volumes of three types of real estate transactions: downsizing, purchase of a second home for retirement and transfers of homes to heirs (and sales of these homes by heirs) as Senior pass in the form of trust and probate sales.

The senior market is not tech savvy (relatively speaking) and are much less likely to feel comfortable selling and buying a home on a phone and much more apt to rely on the relationship of a real estate agent they know and trust.

The average age of real estate agents in California is 59 year old. Until 2015, the average age of buyers in California was 31. 2015 saw a huge increase in the percentage of homes purchase by people age 65 and over as shown in the graph below.  This increase in senior buyers caused the average age of home buyers in the State of California to jump to 48 years old.

Which age group is more likely to use "Uber Realty" and which is an important demographic to focus on because they likely will always rely on the personal relationship of a Real Estate agent?

Given these two trajectories it makes great sense for any Real Estate Agent to target the senior market.

The coming trend of real estate transactions involving seniors shows in the following graph of sales prior to and through the end of 2015:

IVAR Graph

For the first time over this period senior buyers 65 and over accounted for over 20% of home purchases in 2015. The senior market is here now.  Make targeting the senior part a major part of your business plan and sell more homes!

Venn PP

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