Understanding the Top 10 Reasons People Move
For over 30 years, Brian Buffini has been one of the most respected and trusted leaders in the real estate industry. Join his latest Bold Predictions broadcast to learn about the real state of the market and how agents can use that data to increase their listings and win market share. You’ll also hear from Dr. Lawrence Yun, the Chief Economist at the National Association of REALTORS®, for his insight, advice and predictions on what’s ahead.
No matter what happens in the real estate market, there will always be buyers and sellers. Of course, when rates are higher and inventory is tight, it can be a bit more challenging as we have seen over the past year. Despite those factors, nearly 4 million transactions occurred in 2023.
Take the time to listen to your client about what is happening in their life and why they may or may not be thinking of a move. Understanding the “why” behind their choices will help you to better understand and service their needs.
Based on Buffini & Company’s proprietary research, here are the top 10 reasons people decide to move.
- Family ties — Moving closer to family is at the heart of why nearly a quarter of people say they want to move. This is especially true post-covid. Being forced to be apart from loved ones for so long has increased the feeling of wanting to be closer to them now.
- Need a bigger space — Again, the restrictions of being home so much during the pandemic heightened the fact to many homeowners that they need more space.
Although some companies have mandated return to work policies, others are sticking to full work from home or hybrid models. In some cases, the need for more space may be due to family demographics changing, such as a new baby, a returning young adult or an elderly parent moving in. Or it may be that the homeowner wants more space to pursue a passion such as crafts, exercise or gardening.
- Love the rate; not the house — Much has been written about the “lock-in effect” of low mortgage rates. Currently, just over 90% of homeowners have a rate below 6%, 82.4% of homeowners have a mortgage rate below 5% and 62% have a rate below 4%. When rates were close to 8%, those homeowners were not apt to want to move. Now that rates are coming down, along with the realization that the artificially low rates of the past are not coming back, more people are deciding that they do want to move. Knowing that they can refinance at a lower rate in the future is an added comfort.
- Out of area relocation – More people are migrating to new locales, with some even moving to a new state. Reasons include a new job, the desire to live in a different climate or the overall quality of living. Some of the most popular states people are moving to include Texas, Florida, South Carolina, Maine and Idaho.
- Need a vacation home — Baby boomers, who may be retiring or at least not working as much, are eager to have a second home or a vacation home. They may use it for pleasure and/or working from home or eventually plan on making it their primary residence.
- Upgrade neighborhood — As millennials start having families, communities with great schools becomes a priority.For some buyers, proximity to shops, restaurants and cultural attractions might be a draw. Others may choose to move away from industrial areas or noisy infrastructures such as busy roads or airports.
- Lots of equity; lots of choice — For those who have lived in their homes for a significant amount of time, the amount of equity they have available to use for a new home can be a major factor when considering a move. Cash-flush owners especially have the luxury of bypassing many of the hurdles to buying a new home.
- Help for the kids/grandkids — Many first-time buyers find it nearly impossible to cobble together funds for a down payment. Parents and grandparents often offer help with a loan or gift. (Always recommend that your clients contact a qualified financial professional if they are thinking about this option.)
- Time to downsize — Some experts believe there will be a “silver tsunami” of baby boomers who will start downsizing in 2024 and 2025. Many boomers will opt for smaller homes, especially those that are only one level.
- Major change of work/change of life — Sometimes it can be a major event that necessitates a move, such as a job relocation, marriage, divorce, death of a family member or retirement.
Anytime someone moves it is an experience fraught with many emotions, even if it’s something they want. Providing guidance and support for your clients ahead of a move, whether it is coming up soon or just a future possibility, will help make the transition easier for them. It will also showcase you as a trusted, compassionate professional who they can rely on and in turn, refer you to their friends and family members for their needs.
Buffini & Company – We’ve Got You!
Buffini & Company’s coaches have already been working to establish systems and resources in place to help get their clients ready and positioned for a strong 2024 selling season. To learn more about how a coach can help you take full advantage of the extraordinary year to come, schedule a free Business Consultation.