Archive for July, 2010
Striking A Balance Of Classical Architecture And Sustainable Design
Posted by Sibet B Freides in Green, Real Estate Sales, Real Estate Trends on July 30th, 2010
It might surprise you that there are a lot of LEED and Earthcraft certified homes out there that manage to encompass traditional architectural elements. In fact, experts say that the classical architecture of some Southern homes is as green as it gets. Where most would consider the big wrap-around porches and tall shutters of classic Southern architecture to be aesthetically pleasing, the truth is that these features were designed to enable passive heating and cooling without mechanical help.
Developers, architects, and builders are building homes that are not only sustainable environmentally but also with floorplans that provide comfort and utility suiting consumers in multiple life stages.
A recent Builderonline.com article talks about a project in Washington, D.C. that has successfully designed and built a product that has earned a LEED for homes certification and has also established a strong architectural similarity with the historic Capitol Hill district nearby.
The goal of homebuilders now is to strike a successful balance between energy efficiency and classical design, resulting in a more sustainable product. Up until recently we have seen LEED and Earthcraft certified homes incorporating very contemporary designs. These home designs also aggressively showcase the sustainable features incorporated. These new homes in Washington, D.C. do the opposite. They tastefully mask their sustainable features allowing more classical and sustainable aesthetics to shine.
If builders are able to successfully strike the balance of sustainability and age-proof design we are going to see a lot of meaningful and efficient communities in the future. It’s going to be interesting to see how far the modern designs can go in comparison to the more traditional ones that still successfully incorporate energy efficient features.
Conflicting Opinions On A Future House Shortage
Posted by Sibet B Freides in Real Estate Economics, Real Estate Sales, Real Estate Trends on July 28th, 2010
There are many opinions on the topic of a possible housing shortage in America. One side thinks that with so many foreclosures sitting right under the surface we are about to have a major increase of REO homes coming to light. Others, mostly economists, think that a major lack of construction activity over the last two years will ultimately lead to a housing shortage. While both of these perspectives are probably right in some way, I think it all depends on how you look at it.
Is the market going to be flooded with older home including REO ones? It probably will be according to recent reports. On the other hand, the market for newly built homes will probably experience a shortage so those buyers wanting to buy new may have a harder time finding what they want. All of this of course depends on the market itself. According to a Smartmoney.com article, certain regions or cities will experience a shortage of flooding differently than others. Cities like Las Vegas, Phoenix, and Miami are overbuilt so a home shortage in those areas is not likely. States like Washington, Oregon, and Utah will probably experience a shortage sometime in 2012. These locations actually have a balanced supply and demand, which makes experts think that these markets may become under supplied.
In the end, I think it really depends on what regions you are analyzing. We are going to see recovery vary in different locations based on conditions before the crash and current ones. There will however be a noticeable shortage of newly built homes throughout the country. Builders have certainly been on hiatus the last two years and I would think we would definitely see a shortage there may be a boom in new home construction.
Floorplans Are Still Shrinking
Posted by Sibet B Freides in Demographics, Real Estate Economics, Real Estate Trends on July 23rd, 2010
Newly built homes are continuing to shrink, this according to NAHB’s analysis of recent U.S. Census Bureau data about newly built homes.
In 2007, home sizes peaked at an average of 2,500 square feet during the big industry boom. Sizes then flat lined in 2008 and then in 2009 sizes began to shrink. The average home has lost approximately one bedroom over the last two years. That is approximately 83 square feet.
I think we all understand that home sizes are changing for a couple of reasons. Is the only reason because of the financial woes that most Americans are facing? Many experts think so and believe that Mcmansions will return when the economy returns. I disagree.
I believe that an increasing interest in sustainable living and a reduction of emissions is also playing a major role in the shrinking sizes of new homes especially for the younger buyer.
There are other reasons for the rising demand for smaller homes. Builders are starting to realize that the buyer isn’t interested in wasted space. Demand has shifted from the “largest” to the “best value”. While floorplans are shrinking, the demand for features is growing. Features such as energy saving features, home office, better cabinetry, and entertainment rooms are becoming more important than size. Whirlpool and sauna tubs are a real seller for the Gen y group!
Experts are predicting that a recovering economy will not result in a boom in newly built homes or at least not anytime soon. Obviously, there is really no real way to predict consumer demand but all signs point to a demand for sustainability. This of course means smaller homes that are more energy efficient and incorporate more features. I believe the questions of the future will not be size, big or small, but is the architecture and the features different enough to convince the consumer to buy it. I heard an interesting speaker today who said architectural changes always result from economic downturns so we are due for some fresh architecture!
I do think that consumers are starting to understand the money that can be saved with smaller homes. It will be interesting to see what we want as a nation once the economic recovery takes off. Will we hold on to our new green principles or will we be striving for that extra square footage? It will be interesting to see how a new genertion of buyers who does not see the “need” to own a home affects size, features, price and our industry as a whole.
How Important Is Walkability?
Posted by Sibet B Freides in Demographics, Green, Real Estate Trends on July 22nd, 2010
Walkability is becoming increasingly important to home buyers.
According to a WSJ.com article, consumers are willing to pay a substantial amount more for a home that has shopping and eating locations near by. An example they use is a couple from Oregon who chose a home not solely based on the actual house but how close it was to coffee shops and wooded paths. You can read the article here.
Most of the article talks about a service called Walk Score. This website allows users to input an address and obtain a score on how walkable an address is to amenities in the area. The service has become extremely popular with real estate companies and home buyers.
When you think walkable, think beyond urban. Think about master planned smart communities that are incorporating main streets into their designs. Consumers are willing to live in smaller homes that are closer to neighbors as long as they are able to walk to eating and shopping. Most smart code communities have a main street that runs through the middle of the community. They also have natural walking trails too.
It seems that natural amenities and walkability are major selling points in the housing market right now. The article makes an interesting point about why the demand for walkability is increasing which points towards age demographics. The boomers are retiring and want smaller spaces and a community where they can walk. Generation Y wants a smaller home as well but are also interested in being green and saving money on gas.
Whatever the reason, these are desires that shouldn’t be ignored. You will see these things rather naturally in urban settings but master planned communities will have to take special interest in these things in order to stand out to home buyers.
Moving Forward With Digital Advertising
Posted by Sibet B Freides in Marketing, Real Estate Trends on July 21st, 2010
Are display ads making a comeback? I think the obvious answer is yes. Major publications including The New York Times have reported a net income of $12.8 million for the first quarter of this year. With circulation still suffering and print ad revenue continuing to drop, the newspaper saw an increase in online ad spending that helped them post a profitable quarter.
There are other big online publications that are seeing an increase in display ad spending. This really isn’t a surprise as most experts predicted an increase in digital ad spend once companies begin expanding their overall advertising budgets. The difference is that most of the money will go away from print advertising and towards digital advertising including digital display ads.
All the hype around interactive advertising and social media is completely warranted. I also think there is still a place for search engine marketing and display ads. It’s important to analyze how each of these can work within a marketing strategy. Search engine marketing and display ads can only go so far when compared to social media. The idea is to integrate them. Why not have your display and search ads link to your social media profiles and blog? This seems to be the best strategy going forward. If you are going to advertise on these platforms, you should make sure your message is uniform.
The brands and companies that are doing it right are developing a central strategy and then using the numerous advertising tools to execute the strategy. If your strategy doesn’t make since on Twitter, don’t use it. Use only those that effectively execute the strategy and can compliment each other. If not, then your message will either confuse or get lost along the way.
Taking Digital Advertising To The Next Level
Posted by Sibet B Freides in Marketing on July 13th, 2010
Nielsen data collected over the last year suggests that large companies have cut their budgets for print advertising and have slowly increased their budgets for digital. While most of us already know and understand this, there is still a lot to talk about in regards to why and how. Was it because the recession forced companies to pinch pennies or was it because companies were starting to understand the effectiveness of digital marketing? The answer is actually a combination of the two.
I will forever believe that the digital and social media marketing wave hit sooner because of the recession. Unlike most, I don’t think it was a direct result of the recession. To me, the emergence of digital marketing has been on our horizon for a long time. I am not claiming to be the first one to spot it but in hindsight I can see why the recession sparked it.
On a surface level, digital advertising and marketing is cheaper than traditional print. Unfortunately, most companies made the move to digital for this reason alone and didn’t really understand what it was going to take to make these strategies work. Digital advertising and marketing is a powerful means to reach consumers. I don’t think anyone is arguing that. The problem is that most companies still haven’t taken their digital strategies to the next level. They understand that it’s cheaper so they like it. One of the big advantages of digital are the targeting and tracking capabilities it presents. To me, this is absolutely crucial in developing a digital strategy that is based on any type of web traffic.
You would be surprised at how many companies are overlooking this. I am talking about going beyond analytic reports. How can you really tell if your digital efforts are working? If you don’t set goals and pick a means of measurement then how can you ever know if you are doing anything right?
We are at the point now where being on Twitter isn’t good enough and having a bunch of fans on Facebook doesn’t tell you anything. How are these applications generating leads, making sales, and building your brand? As digital advertising budgets continue to grow, we better start understanding how those growing budgets are getting results.
Can The iPad Help You Sell Homes
Posted by Sibet B Freides in Marketing, Real Estate Sales, Real Estate Trends on July 12th, 2010
The on-the-go work schedule of a Realtor is one that can be amazingly efficient or obviously unorganized. If you have ever been through the buying or selling process with an agent, you know that it doesn’t take long to figure out if the agent is organized. Unfortunately, it’s a lot easier to tell how unorganized an agent is as this will soon cause frustration.
I recently read an interesting article about how the Apple iPad and Realtors were made for one another. After reading the article, I am pretty convinced that these tablets can be used as a strong selling tool for agents. While the article referred to independent agents, I think that the same principles can be applied to a sales team in master planned communities or condos.
For example, sales agents will be asked a lot of questions about the local area including, schools, shops, and even crime rates. Having a device such as an iPad on hand will help answer these questions convincingly. A visual answer is always better than just a verbal one and having questions to concerns pre-organized on a device will go a long way with potential buyers. I also like the idea of giving the iPad to the potential buyer and letting them scroll through property information. A good example would be creating a slideshow with seasonal pictures of the community. By doing this, you are creating an experience.
Incorporating devices like the iPad into your sales strategy will help agents be better organized and will allow them to better display the features of a community. Devices like these are becoming more and more prevalent in daily use and we will continue to figure out ways to make them work for different purposes. It is obvious to me that the iPad could greatly benefit those involved with real estate sales.
New Market Survey Defies Previous Gender Stereotypes
Posted by Sibet B Freides in Demographics, Marketing, Real Estate Trends on July 9th, 2010
According to recent market survey, housing desires are changing from the traditional and are evolving to suit a new economy and a new housing market.
An article on Builderonline.com details the results of a recent market survey that polled 1,000 individuals on what they desire in a home and what their major turn-offs are. The answers were very different based on the gender but there were a few were common such as the desire for green and energy efficiency.
For women, it seems that a functional floor plan is top priority for a new home, which isn’t all that surprising to me. What is an interesting trend change is that among the top priorities for females, one was a home office, a room that was traditionally designed more for males. This is in large part due to an increase in working mothers who telecommute. This is a trend that real estate experts and marketers have been predicting for a while now. It was also interesting to see that males care more about luxury bathrooms than females.
This survey shows us that the market is changing in ways that many could have never predicted. What could have been predicted is that regardless of gender, homebuyers want energy efficiency, fluid floor plans, and an ample amount of storage. These are things that won’t be changing anytime soon.
Digital Advertising Isn’t The Housing Market Savior
Posted by Sibet B Freides in Marketing on July 8th, 2010
I recently read an article titled “Online marketing comes to realty market rescue”. I can’t say that I completely agree with the title or the contents of the article but I do think that an attention to digital marketing has helped realty-based companies during the housing market crash.
The titled of the article makes you think that without a slumping housing market, things would have carried on as normal. The truth is that a slumping housing market and major advertising budget cuts forced marketers and advertisers to find better ways to utilize their funds than traditional means. The explosion of digital marketing was going to happen with or without a housing market crash. Every emerging market trend that we are seeing right now that relates to digital would be happening anyway. The crash just accelerated the transition to a more digital based strategy and forced marketers to reevaluate their advertising expenditures.
The housing market crash and budget cuts were not the sole reason digital marketing and social media have become so prevalent. If this were true, a recovery in the housing market would mean that advertisers could revert back to their old ways and that will absolutely not be the case in the coming years as we begin to see a recovery.
Online marketing isn’t rescuing the housing market. It’s a misleading title. It should be, “The financial crisis speeds up the adoption of online marketing in realty markets”.
How Blogs Are Changing The Web
Posted by Sibet B Freides in Marketing, Social Media on July 1st, 2010
Social Media Examiner has a great article about blogs, their usefulness, and how they’re changing the face of the Web. You can read it here.
As the author mentions, companies around the world are embracing WordPress and other blogging platforms as not only a means to blog but also as a foundation for entire websites. I have learned that WordPress can be used to create great looking websites that are easily managed and updated. We have actually created a few client websites using it and are very pleased with the results.
The big benefit with using such a system for your website is the ease of updating it allows. Having an updated website is important for two reasons.
The first has to do with SEO. Google site rankings are based on several factors but the freshness of a website weighs heavily in its ranking equation. A blog platform like WordPress allows you to quickly and easily update a website or blog with little or no website coding experience. This will help you keep your website fresh without too much time and trouble.
The second has to do with your site visitors. The bad thing about static web pages is that they are never updated and become boring to visitors. In fact, visitors may come to your website and never return because they feel they have seen everything. Constantly updating your website will help keep visitors interested. This is one of the big reasons that people like blogs. They’re rich in information when written properly and become a fresh source of knowledge.
The article over on Social Media Examiner gives several reasons why blogs are changing the Web and I would suggest reading it if you’re on the fence about blogs. It’s a great point-by-point explanation on why many people think blogs are changing the Web and also molding its future.
