Generation Gap Even in Real Estate

Published by julia | Filed under Market Trends, Miscellaneous, Real Estate, Shout Outs

A few people may pay attention to it and even the real estate industry has been negligent about the surfacing fact over generation gap. For quite some time, real estate has never been associated with petty issues like generation gap between investors and agents. But now, this issue is taking an impact simply because experts assert that a continuing gap may hamper and affect the future of the industry.

In the United States, property industry body National Association of Realtors released recent findings of a study and analysis over the generation and age gap between players of the real estate industry. Looking at such findings is surely interesting enough.

First of all, in the United States, it has been found that the median age of home and property buyers or investors is 39 in the 2007 fiscal year. Interestingly, the age range of first-time home and property buyers is about 25 years old to 34 years old. Such first time buyers account for about 49% of the total first time transactions for homes and properties. That only means one thing: Investors and buyers of real estate is getting younger.

There is actually no significant and pressing issue about the young age of investors. In fact, most experts assert that the trend is positive and is providing much comfort and ease. Young people these days are striving to be more entrepreneurial. The thing is, there is one concerning and alarming figure that comes with it. The median age of realtors or agents or sellers of homes and properties is 51 years old.

The problem is that the real estate industry is needing fresh talents and skilled agents. If the trend would not change, it is estimated that in the near future, the real estate industry would further decline because sales would definitely not pick up. There is nothing wrong with the aged agents. But as you know, sometimes, it takes young people and youthful vigor to infuse fresh ideas and concepts and reinvigorate any industry.

Analysts also note that older sellers or agents of real estate assets are competent and effective enough. But because the age of buyers is getting younger and younger, most of the techniques and strategies to sell that older agents use may not lure and convince younger buyers into further investing into real estate. That, for the whole of the industry, can be a real pressing problem.

Younger sales agents are more likely to be able to lure equally young prospective buyers of real estate. Studies show that old agents are not always likely to convince younger buyers into buying properties from them. Aside from that, older agents are also feeling less excited and motivated when they are trying to lure younger buyers, despite the fact that most old agents feel superior to younger buyers.

To remedy the situation, real estate experts advise the industry to welcome more young agents or sellers, though there is no need to set aside and axe the older ones. In the real estate industry, there always should be neutralizers and balancers.