Archive for the ‘Real Estate Trends’ Category
What Luxury Agents Do for That Sale
Posted by Sibet B Freides in Demographics, Real Estate Economics, Real Estate Sales, Real Estate Trends on November 8th, 2011
According to the LA Times, real estate agents listing an $8-million home in Santa Monica wanted to ensure a good crowd for an open house last month, so they hired a stilt walker, shirtless male jugglers and a contortionist who floated in the pool, encased in a clear plastic bubble.
Nearby, an agent stationed models in front of a new condominium project. Wearing velour robes and flip-flops, the young men and women served free drinks to promote the cocktail hour lifestyle at the development.
Still another went all the way to Spain to drum up business.
When marketing a multimillion-dollar mansion, a plate of cookies and free coffee simply won’t do in today’s new market. Agents have been outdoing themselves to help get through this market.
Aerial Showgirls, Thai foot massages, and Botox treatments… is all this really necessary? Although agents are putting up thousands of dollars for these remarkable parties, they are definitely seeing up to three times the traffic than they would with a simple display ad or a listing on MLS and some generic signage.
Agents are treating buyers seeking homes in the $2-million and more range like royalty, including facilitating their home tour starting with a red carpet.
Sometimes, it can be as simple as putting a new spin on an old standby, such as staging.
A recent agent recruited a well-known interior designer to outfit the home with vintage and contemporary furniture and art, which was then offered for sale at the open house.
He told the LA times that the cost was less than hiring a traditional staging company, the event drew about 200 people and the property received multiple offers, selling at nearly full price within a week of coming on the market.
To get foot traffic, a condo agent put a new “spin” on a sign-spinner by hiring models to hand out fruit drinks on the sidewalk… and beer, wine and mimosas to adults that came in to see the model units. The agent spent about $5,000 but sold four units on the weekend following Thanksgiving.
What’s the bottom line? You may be afraid to spend the money and think outside the box, but this is the time to go above and beyond and really draw attention to your properties. While we don’t think you should pull out all the stops and hire a circus, there are some worthwhile ideas in the shock and awe mindset that might just get you results.
NAHB Releases Improving Housing Markets List – Nearly Doubles in October
Posted by Sibet B Freides in Real Estate Economics, Real Estate Trends on October 27th, 2011
The second edition of the National Association of Home Builders/ First American Improving 
Markets Index (IMI), has been released, showing 23 individual housing markets now qualify as “improving” under the new gauge’s parameters. According the NAHB, this is nearly double the 12 housing markets that made the list last month.
The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data, which are then analyzed to generate a list of improving markets.
The index released earlier this month reveals metropolitan areas that have shown improvement for at least six months in housing permits, employment and housing prices.
Pittsburgh and New Orleans remain the two largest improving markets; however smaller cities in which energy and agriculture are the primary economic drivers indicate that the effects of the recession have been less pronounced, according to NAHB Chief Economist David Crowe. He states that Texas stands out in particular, as it made seven of the 23 entries on the list.
The complete list of improving markets can be viewed here.
What are your thoughts? Do you think this is a sign that the housing recovery is well on its way?
Commercial Space Needs – an Upward Trend?
Posted by Sibet B Freides in Real Estate Economics, Real Estate Trends on October 25th, 2011
According to a recent article in the Atlanta Business Chronicle, space planners for commercial office space provide excellent insight into leasing activity. They help evaluate space needs and functionality and provide future space demand in addition to trends in office design, often leading to new construction.
For the first half of 2011, their activity projected they would have their best year since 2007, as it relates to office space needs. If the trend continues, total projects will be up 30 percent over 2010 and 45 percent over 2009.
Because of the state of today’s market, every company is looking to see how they can lower operating expenses and increase worker productivity.
The real estate market is not an accurate indicator of job growth as it relates to absorbed space but it does create many jobs through projects. Industries experiencing job growth driven by these types of projects include construction, manufacturing, real estate consulting, project management, and design.
It seems as if the latest trends are bringing more adaptive re-use of space rather than ground-up construction. The ABC predicts that this trend will probably continue until at least three to four years into a solid economic recovery.
Rentals on the Rise
Posted by Sibet B Freides in Real Estate Economics, Real Estate Trends on October 11th, 2011
Home sales may still be struggling, but the rental industry is booming. Aside from the housing market woes, more and more Americans are downsizing. It’s no surprise that rentals are on the rise.
Gen Y is not as interested in garden-style apartments. So will high rises gain popularity? Or will they be looking for a new product not yet designed?
We know they will expect wi-fi, iPod docking stations and apartments that truly reflect who they are.
The high foreclosure rate is not the only factor in the accelerated transition toward leasing. Today’s housing demand has actually shifted toward smaller dwellings; with Boomers downsizing to urban centers offering more amenities and the Millennials just hitting their single, urban life stage. Generation X is one of the smaller demographic groups right now, translating to a much weaker demand for traditional neighborhoods with single-family homes.
As the economy is now starting to lift, those who took on roommates or moved back with their parents are just starting to emerge into the real world again. Often the majority of these groups start with a lease.
Apartment developers are already responding to the growing demand for rental housing, but with so many construction firms out of business or in slow recovery there may soon be a rental shortage in many metropolitan areas.
Top 7 Social Networking Sites for Real Estate
Posted by Sibet B Freides in Marketing, Real Estate Trends, Social Media on October 6th, 2011
Here are the top seven social networking sites that benefit anyone in the Real Estate industry.
1. Facebook
Now reaching 800 million active users, Facebook is one of the easiest ways of finding prospective customers within any given area. For real estate you can target very specific groups according to your business needs and reach your prospective customers where they already are.
572 members in the Atlanta area are using Merchant Circle’s free marketing tools to find new local customers. You can link up with other local businesses, create special deals, and fill your profile with influential reviews.
3. Trulia
Trulia is an all-in-one real estate site that’s jam-packed with the most useful and timely information on homes for sale, apartments for rent, neighborhoods, markets and trends to help you figure out exactly what, where and when to buy. You can also follow popular real estate blogs and get advice and opinions from local experts on Trulia Voices.
4. ActiveRain
ActiveRain is one of the few networking sites that are exclusively meant for real estate professionals. Join 214,063 professionals on the world’s largest real estate network — it is still free.
RealTown is a resource for a wide variety of real estate related articles from industry experts, syndicated columnists, Real Estate magazines, vendors and members. It is an internet portal that features everything real estate. Developed back in 1995, RealTown is one of the oldest and most respected communities in the real estate industry.
Realtors are beginning to leverage the power of Linkedin.com for their business. The growth of the site’s traffic and user base coupled with opportunities to join Groups, engage in Q&A’s, and broadcast information makes Linkedin an absolute necessity to any Realtor.
Zillow is a free online real estate site where you can search for homes for sale, find home prices, see home values, view recently sold homes, and check mortgage rates.
Bonus: Google +
Not quite in the top tools list yet, Google+ offers a steady concentration of traffic from affluent demographics that could create the perfect conditions for luxury marketers.
How about you? What are your favorite real estate social networks?
Benefits of a Live-Work-Play Community
Posted by Sibet B Freides in Real Estate Trends on September 29th, 2011
Live-work-play communities aren’t a new concept. Formerly known as mixed-use developments, they are rooted in the idea that people are happier living in a neighborhood that provides for most of their needs.
Downtown areas used to function this way in many major cities before people started migrating to the suburbs. The most recent and simple definition of a live-work-play community is a development that has a variety of housing, is close to local companies where the community works, and provides recreational outlets for eating and entertainment. Like miniature towns, they can include grocery stores, movie theaters, walking trails, dog parks and the more.
Live-work-play communities are no longer limited to city centers, either; they are now popping up in suburban areas as a way to mimic the conveniences of city life.
What are some benefits of a live-work-play lifestyle?
Convenience for low-stress living. These communities eliminate long commutes and the hassle of driving all over town to run errands. Less driving also means less pollution and more walking for a healthier lifestyle.
Closer to your neighbors. Live-work-play housing options typically include apartments, condominiums, townhomes and single family homes. They are often built close together in a small neighborhood area, so it is easy to get to know your neighbors. Often you will share community amenities such as parks, restaurants, and community gardens. This makes it easy to connect with your neighborhood.
The circle of life. You may start out as an apartment renter, then grow your family and move to a house, and finally downsize in your later years to a townhome. It’s positive to be able to enjoy the same neighborhood through all the stages of your life.
How you live, work, and play has a big impact on your health, stress levels and quality of life. What do you most enjoy from this type of lifestyle? Do you think there should be more of these types of communities in your city?
Boomers: Is the Housing Market’s Cavalry Here?
Posted by Sibet B Freides in Demographics, Real Estate Economics, Real Estate Trends on September 22nd, 2011
Being able to easily meet today’s required 20 percent down payment, boomers should be ready and able to bail this generation out of the housing muddle. So why is this not happening?
Unfortunately, the boomers are too busy taking care of the Gen-Xers that CAN’T qualify for a mortgage in today’s restrictive market.
I still think there’s hope for the market to be recovered by this steadfast generation. For one, they did not purchase their first home during the recent housing boom, so this means they will have a larger home equity cushion and the ability to secure a reverse mortgage.
They are also looking for a different lifestyle and product and are ready to buy. According to the NAHB, specifically appealing to boomers are single-story homes and with all living space on one level.
The 55+ demographic actually account for almost a quarter of all new custom-home purchases, so builders should be catering to this group of middle agers. Unfortunately, homebuilders are contending with a huge overhang of existing homes on the market, and having a harder time getting banks to sign off on construction loans.
Do you think the boomer generation will lead the housing revival? We’ve already seen signs, do you think it’s just a matter of when? Let us know by commenting below or posting on our Facebook page!
What is a Home Energy Rating?
Posted by Sibet B Freides in Green, Real Estate Trends on September 15th, 2011
Based on the home’s construction plans, a Home Energy Rating is performed using an energy efficiency software package which yields a projected, pre-construction HERS Index.
Upon completion of this analysis, a Home Energy rater will work with the builder to identify the energy efficiency improvements needed to ensure the house will meet ENERGY STAR performance guidelines. The rater typically conducts onsite inspections and uses the results of various tests to generate the HERS Index for the home.
A home energy rating is a recognized tool in the mortgage industry, as it quantifies the energy performance of a home.
The HERS Index
The HERS Index is a scoring system established by the Residential Energy Services Network (RESNET) in which a home built to the specifications of the HERS Reference Home scores a HERS Index of 100.
Each 1-point decrease in the HERS Index corresponds to a 1% reduction in energy consumption compared to the HERS Reference Home.
Why should builders choose to build ENERGY STAR homes?
- Homebuyers will save money every month and have a more comfortable and safer home.
- Homeowners’ requests to save energy have become high demand. Some buyers will even use projected energy savings to pay for high-end upgrades.
- Protect the environment, and openly promote that as part of your brand.
- As an Energy Star builder EPA allows you to use their produced marketing and technical resources at no cost.
What things do you consider when choosing whether or not to build an Energy Star home?
Gen Xers are Online the Most
Posted by Sibet B Freides in Demographics, Marketing, Real Estate Trends on September 1st, 2011
It’s not the Millennials that are the most savvy in the digital world. Generation X—the first generation to grow up with PCs—are the ones plugged in the most. These 34- to 45-year-old consumers are heavy users of digital tools, but they also watch more TV than any other age segment.
A new eMarketer report, “Gen X: Demographic Profile and Marketing Approaches” indicates that this group is as comfortable with digital as with traditional media. “To effectively engage with Gen X, brands need a strategy that incorporates multiple channels—including mobile, social and online video—with authentic, relevant messaging,” the report notes.
Since this demographic actively loves TV along with their digital conveniences, video marketing is a smart choice to reach them.
eMarketer forecasts that 74.2.% of Gen X internet users will watch online video at least monthly in 2011, and that percentage is expected to grow to 80% by 2015.
It’s their shopping habits that speak the loudest of this generation. They are more likely than the general population to visit online retail stores mobile retail sites.
Some common characteristics of Gen X
Generation X came of age in an era of two-income families and rising divorce rates. Women joined the workforce in large numbers, spawning an age of “latch-key” children. As a result, Generation X is independent, resourceful and self-sufficient.
The first generation to grow up with computers, Gen Xers are comfortable using smartphones, e-mail, laptops, GPS, iPads, and more.
Many Gen Xers lived through tough economic times in the 1980s and saw their workaholic parents lose hard-earned positions. Because of this, they are less committed to one employer and more willing to change jobs to get ahead than previous generations. They adapt well to change and are tolerant of alternative lifestyles.
Tell us how you market to this audience – do you employ different strategies or use the same message and discipline for all your potential clients?
How are Builders Using QR Codes?
Posted by Sibet B Freides in Marketing, Real Estate Trends, Social Media on August 25th, 2011
QR code for the URL of the English Wikipedia Mobile main page
Mobile marketing for homebuilders has proven to now be more affordable and effective with QR Codes, which enable builders to create interactive experiences for potential homebuyers from almost any location using a Smartphone.
QR codes, short for Quick Response codes, are the black block patterns on white backgrounds that are now seen almost everywhere. A Smartphone user can scan the patterns with a free QR reader, which allows marketers to direct the user to a mobile website, a video, a social media page, text message, or connect the user directly to a sales office.
Homebuilder marketing traditionally consists of two options: print and signage, and online. Online may be cost-effective and measurable, but typically reaches potential buyers only when they are on their computer. Traditional marketing is not interactive and harder to measure.
QR Codes offer homebuilders the ability to create an interactive experience for buyers virtually anywhere.
Like any other media, builders must have a specific goal for using QR Codes. Are they trying to build or increase a social media following, expand an email opt-in database, generate more sales office traffic, or push an event or promotional offer?
Where should homebuilders place QR Codes?
You can easily augment your current marketing plan and place the Codes on print ads, social media profiles, model home displays, billboard and signs, on price sheets, property flyers, and more.
Have you used QR Codes yet? Would you consider using them for your business?
