Happy Valentine’s Day from Austin Texas!
What buyer archetypes currently exist and what is the level of confidence in relation to the housing market?
Consumer sentiments fuel buying and selling waves. The market shifts as people like to conform with what everyone else is doing to fit in. Have you noticed The bandwagon effect occurring in this way? Do you agree that the more popular buying becomes, the more people are likely to adopt the idea. I do believe that is why home sales occur in greater numbers during seasonal shifts and when rates decline. It works with house listings too.
Where one house sells in a given area two more will follow.
I want to focus on THE 10 buyer ARCHETYPES OF 2024 (Beginning with the letter M)
Money grabbers - house flippers, airbnb operators or speculators, marketeers of real estate
Market shifters - bullish or bearish Investors who are fear, opinion driven, part of the bandwagon.
Multi Gen’s - Parents & adult kids, kids with aging parents living in the same household
Mega wealthy - inheritance, asset liquid buyers
Migrators - those who move for safety, security, distance from crime, including but not limited to job Relocation
Margin Makers - downsizers who want to simplify household chores, increase their free time or pay down debt including young and mature buyers
Mobilizers - 1031 exchangers who buy to avoid gains from asset sales, stock market players who diversify
Milestones - Retirement or achievement purchasers
Multipliers- more kids, births, adoptions
Mates - includes married and unmarried couples moving into one household
A few of these buyer categories have become less active in the market and that is why the market has slowed and inventory has risen in Austin especially.
I want to share some positive news to give you a balanced picture of the market.
WHAT ARE CONSUMER SENTIMENTS REGARDING THE HOUSING MARKET-?
HOW IS IT MEASURED?
Confidence is growing in the market in 2024 according to Fannie Mae
The Fannie Mae Home Purchase Sentiment Index® (HPSI) asks 1000 CONSUMERS 100 questions On a monthly basis
WHAT ARE THEY ASKED?
1. IS IT A GOOD TIME TO BUY NOW?
2. IS IT A GOOD TIME TO SELL NOW?
3. IN THE NEXT 12 MONTHS DO YOU THINK HOME PRICES WILL GO UP, down or STAY THE SAME AS THEY ARE NOW?
4. IN THE NEXT 12 MONTHS DO YOU THINK MORTGAGE INTEREST RATES WILL GO UP, down or STAY THE SAME AS THEY ARE NOW?
5. HOW CONCERNED ARE YOU that you will lose your job in the next twelve months?
6. HOW DOES YOUR CURRENT MONTHLY HOUSEHOLD INCOME COMPARE to what it was twelve months ago?
HERE’S WHAT THEY SAID-
THE SENTIMENTS INDEX increased 3.5 points in January to 70.7, its highest level since March 2022.
What is giving consumers confidence?
1. Job security = In January, 82% of consumers indicated that they are not concerned about losing their job in the next 12 months, FYI last month it was just 75% - meaning 25% were concerned
2. Expectation of lower rates = 36% of respondents indicated that they expect mortgage rates to go down in the next 12 months
Home purchase sentiments turn into CONSUMER PURCHASE DECISIONS.
ENOUGH DOOM AND GLOOM DISCUSSIONS with regards to rates. The outlook is good!
UNDERSTAND YOUR MARKET
UNDERSTAND YOUR PRODUCT
TARGET THE BUYER ARCHETYPE YOU THINK YOUR HOME WILL SELL TO
GO FOR IT!