Forecasted 2004 Sales Activity by Life Stage

New Resource to Plan the Strategy for Your Next Community

By John Burns

January 20, 2004 (All day)

While I cannot project total 2004 home sales with certainty, information is now available to understand the mix of home buyers in each price point in every market in the country. Based on my analysis of this information, 2004's U.S. home sales (new and resale) should be distributed as follows:

Did you know that married couples under 55 and without children now buy more homes every year than young families? Did you know that the greatest growth in home sales in 2004 will be by empty nesters, mature families (youngest child is 6 or older) and retirees? How many of these buyers are shopping in your price point in your market?

While the actual number of sales may differ, the distribution of sales is not likely to change much. By understanding the household composition of buyers shopping in your price range, you can effectively design and merchandise your homes to sell faster than the competition's. A comparison of the household composition and buying activity of the 6 major categories of buyers is as follows:

John Burns publishes three free Building Market Intelligence e-mails each month: U.S., Local and Strategic. He helps real estate executives develop and execute strategic plans, conduct market research and maximize profitability.