Tuesday, July 24, 2012

Dangers Lurk for Real Estate Agents, Echo Boomers to Play Key Role in Future Home Market


Most real estate agents—from Pennsylvania agents to professionals holding South Carolina real estate continuing education—are unaware or unmindful of the dangers of their work. It is not a job that usually carries with it the dangers of say a policeman’s—but it can be dangerous, as a Pennsylvania realtor found out recently.

On May 21, agent Sharron Minnich of Prudential Bob Yost Realtors in West York was abducted and forced at knifepoint to withdraw money from an automatic teller machine.

The abductor, who posed as a prospective buyer, was arrested shortly after the incident. The incident exemplifies the dangers that real estate agents constantly face but unfortunately consistently are underappreciated as they go about their tasks, which regularly include holding open houses for sellers, driving buyers around to show them properties, or simply meeting a prospective client for the first time.

According to the Bureau of Labor Statistics show, fatal workplace injuries in the real estate industry hit a high in at least seven years in 2010, with violent acts causing the most deaths. 

Real estate agents are so busy, and they lack the formal security training to realize when they might be in a potentially dangerous situation," pointed out Robert Siciliano, the CEO of Boston-based realtysecurity.com, which offers safety courses to real estate groups. Matt Lombardi, a National Association of Realtors (NAR) vice president who is involved in the trade group's National Safety Program, revealed that a basic but key defense for agents against potentially dangerous situations is: Know thy client.

"You need to get as much information about the person as you can before you decide to start working with him or her," Lombardi emphasized.

So as the real estate agents (safely) work their clientele in the recovering housing market, new kids on the block are arriving.

The National Association of Realtors (NAR) predicts changes in various housing trends over the next two decades as demographics undergo major shifts. At the center of these changes is a group that has come to play in this generation the role that the baby boomers used to play. The group is collectively called, in a nod to the iconic group it is supplanting, echo boomers.

The echo boomers constitute this generation’s 17-31 year olds. According to the 2011 National Association of Realtors Profile of Home Buyers and Sellers, these younger home buyers and potential home buyers make up roughly 31 percent of the latest home purchases.

The echo boomers muster up impressive numbers. It is nearly 62 million strong, with a more diverse ethnicity than the baby boomers. NAR estimates about 55 percent Caucasian and 45 other ethnic groups versus the baby boomer group’s 65 percent Caucasian. In addition, the group is college-educated and probably will stay single longer than the previous generations. 

Based on data from the American Community Survey, although many echo boomers are still too young to enter the home market, indications already point to significant homeownership increases among the echo boomers compared with the baby boomers at the same age. "While 900,000 households in the millennial generation [echo boomers] own their own home, only 500,000 baby boomer households owned their own home at the same point in their lives," NAR says on its website.

The echo boomers will likely rent first before they buy their own homes, say real estate industry experts.

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