4 Shocking Graphs and 8 Steps to Revising Your Real Estate Marketing Strategy

By
Services for Real Estate Pros with Trulia

8 Key Consumer Changes 4 Shocking Graphs and 8 Steps to Revising Your Real Estate Marketing Strategy

The real estate market is FINALLY improving and it is time to drastically change your real estate marketing strategy. We conducted a survey of 400 consumers who purchased or sold a home in 2004 AND in 2012.  Here are three major trends we uncovered and 8 key strategies to improve your real estate marketing & technologies to take advantage of these changes in the market place:

  • US real estate market went through an unprecedented downturn from 2008-2012, but technology adoption key growing 
  • The Internet and mobile technology adoption continue to accelerate and this is changing how consumers buy and sell real estate
  • The US population is aging.  24% of the US population will be retiring in 20 years. Family formation drives home purchase and fertility rates are declining. One segment of the US population is growing faster than others and that is the Hispanic population.

I am hosting a webinar on on Wednesday April 17th at 1pm EST and 10am PST to go through the results of our study and talk through 8 key changes in your real estate marketing strategy.   Click here to register for the webinar

I know you hear this every other day, but below are four charts that should convince that the real estate market is changing and the way you market to and manage your real estate prospects needs to change as well.  No – I am not talking about social media or mobile marketing, but those are part of the broader challenge. There is a fundamental sea change occurring in how consumers approach real estate, how they research real estate, and how they select a real estate agent.

The Real Estate Roller Coaster

If you don’t have whiplash by now, I applaud you.  We have covered the real estate roller coaster before.  We have gone from real estate euphoria to real estate death spiral and now back to real estate euphoria in 2013.  (Of course, ActiveRain was the first to call a recovery in the real estate market in 2012 and this year, ActiveRain predicted the spike in the real estate market that we are currently experiencing.  More data and insight on the restate recovery on Real Estate is Back on RealEstate.com)

The S&P Case-Shiller Home Price Index shows the major retraction in the market.  A deathly retraction of the market.  You can see that the real estate market dropped like a rock from 2008-2011.  We in the real estate industry thought that the world stopped.  But it didn’t.

Case-Shiller Index 2000-2013

Technology Continues On

Due to the challenges in the real estate market and the banking industry, real estate sales ground to a halt.  The builders stopped.  The real estate agents and real estate brokers battened down the hatches and prepared for a protracted downturn in the market.  Banks stopped lending.  We all felt it.

Technology and changes in consumer media have plowed forward.  Nothing stays the same, even if the real estate industry has suffered challenges.

Three companies continued charging forward as if times could not be better: Google, Apple and Facebook.  Google continued its domination of the overall Internet which it started in 1998.  Apple reinvented the phone with the first true smartphone, the iPhone released in 2007.  FaceBook started a new social media revolution in a college dorm room in 2007.  Coincidence? 

The results have been remarkable.  Now 78% of US  consumers are online with the over 55 population finally catching up with younger populations. 93% of Americans have a mobile phone, 56% of US consumers are surfing the Internet via mobile device and nearly a quarter of consumers are using an iPad or tablet.  Only using a desktop computer to access the Internet is unfathomable to anyone under the age of 30.  Facebook now controls 28% spent on the mobile Internet.

So the question is how has this affected consumers looking for information on real estate on the Internet?  

US Internet and Mobile Phone Usage 2000-2011

The Face of America Is Changing Too

America has kept on changing and evolving as well.  For anyone paying attention to the 2010 US Census or the current US financial challenges, the US population is getting older and we are living longer.  The Baby Boomers are retiring at an astonishing rate.  According to the Pew Research Center, 10,000 Baby Boomers are retiring a day for the next 19 years.  Up to 24% of the US population will be entering retirement over the next 20 years.  The retirement of Baby Boomers will dramatically chang the face of US real estate and the US economy.

Baby Boomers Retiring

From NPR

Simultaneously, the rate of new family formation is declining.  Home purchases are driven by family changes – people getting married and babies being born.  Fertility rates have dropped due to the Great Recession, starting in 2008.  Historically we have seen people have fewer children when there are financial troubles like a recession or depression.  The decline in new family formation can be seen across all ethnicities & races in the US. You can see from the chart below, the rate of new family formation among Hispanic families is significantly higher than all other ethnicities.  Correspondingly NAHREP is predicting that Hispanic home buyers will account for 50% of new home purchases by 2020.  The Hispanic population is going to be a MAJOR driver of the real estate industry 7 years from now.

Fertility Rate By Race

So let me summarize the big changes happening:

  • US real estate market went through an unprecedented downturn from 2008-2012
  • The Internet and mobile technology continue to accelerate
  • The US population is aging with only one segment growing, which is the Hispanic population

Have you changed your real estate marketing strategy to account for these changes?

We conducted a phone based consumer survey in 2004 and then recently repeated in 2012 asking consumers who have had purchased or sold a home in the past 12 months.  We asked them when they started thinking about buying or selling and why.  What sources did they use for research?  How did they select a real estate agent?

I am speaking on Wednesday April 17th at 1pm EST and 10am PST talking about the results of our survey and 8 key changes that you need to make to your real estate marketing strategy.  

REGISTER FOR MY WEBINAR HERE.

I will post the 8 tips and presentation here on April 18th so that you can download them and share them with you friends.

Check it out.  I look forward to seeing you on April 17th.

Posted by

Nikesh Parekh

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Rainmaker
186,489
Nikesh Parekh
Trulia - Bellevue, WA
Technology Entrepreneur, Executive, & Investor

Thanks Leah and Connie!

Apr 09, 2013 01:38 PM #13
Rainmaker
77,664
Maggie O'Connell
Reno, NV
Reverse Mortgage Purchase Specialist

With all the boomers, keep the reverse mortgage purchase loan in your tool box!

Apr 10, 2013 03:10 AM #14
Rainmaker
186,489
Nikesh Parekh
Trulia - Bellevue, WA
Technology Entrepreneur, Executive, & Investor

Good idea Maggie!  Especially at today's interest rates.

Apr 10, 2013 07:03 AM #15
Ambassador
1,244,046
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

Great charts and even better information, Nikesh!  Thanks!

Apr 10, 2013 09:42 PM #16
Ambassador
1,468,758
Toni Weidman
Sailwinds Realty - Trinity, FL
26 Years Selling Homes in New Port Richey, FL

Wow, Nikesh, who knew when we started in real estate 22 years ago that we would be worrying about fertility rates at some point. Makes sense that it will drive the market (or not) in the future.

Apr 10, 2013 09:42 PM #17
Rainer
420,125
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Interesting illustrations and comments, however, using the term entitlements with Medicare and Social Security benefits and integrating them with other social justice entitlements is irresponsible.

Americans have a right to those benefits of Social Security and Medicare because they paid into them. If the federal government managed this program effectively and prudently, these challenges, Social Security and Medicare, wouldn't be a challenge, don't you agree?

Other entitlements that amount to hundreds of billions of dollars annually that are received by millions of illegal immigrants and others are gifts from our politicians funded by American taxpayers. 

If discussing challenges and solutions, let's define some terms or words that are used in our discussion, please and not generalize the challenge. 

Apr 10, 2013 11:03 PM #18
Rainmaker
190,976
Ben Yost - 303-587-4297
First Time Home Buyer, Mortgage Rates, Pre-Approval - Denver, CO
FHA, VA, Conventional - Mortgage Loans in De

Good Stuff! Craft your Marketing accordingly!

Apr 10, 2013 11:09 PM #19
Rainmaker
253,789
Mickey Hayward
Sunset Properties, Hayward Realty - Onancock, VA
Farm - Land - Home Sales & Commercial Real Estate

Great charts and analysis and a most scary time in our country.

Apr 10, 2013 11:39 PM #20
Rainmaker
328,291
Mahesh Mike Patel
First Team Real Estate - Anaheim Hills, CA
Call Me And Consider It Done!
Thanks for the info. Will sign up for the webinar.
Apr 10, 2013 11:44 PM #21
Rainer
235,031
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

possibly good information for the average Realtor but the consumer does not care

Apr 10, 2013 11:56 PM #22
Rainer
370,018
John Dotson
Preferred Properties of Highlands, Inc. - Highlands, NC - Highlands, NC
The experience to get you to the other side!

Love those graphs - especially the fertility rates.

On the "Home Price Index"  I'm just barely past hope!

Apr 11, 2013 01:25 AM #23
Rainmaker
774,727
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Great graphs and backgroud inf Nikki.  Looking forward to the webinar.  Hope it is recorded as well.

Apr 11, 2013 02:51 AM #24
Rainmaker
186,489
Nikesh Parekh
Trulia - Bellevue, WA
Technology Entrepreneur, Executive, & Investor

Hi Kimo, The point of my blog was not to discuss Social Security or Medicare, but to talk about how demographics affect the real estate market.  That being said, I am happy to discuss Social Security or Medicare at any time.

Everyone else, thanks for the feedback.

Apr 11, 2013 04:03 AM #25
Rainmaker
1,294,658
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Area Real Estate

Why would someone think that a comment about social security is appropriate here? They must have ADHD & can't read your post.  See you there!

Apr 11, 2013 05:49 AM #26
Rainmaker
726,896
Thom Abbott
MyMidtownMojo.com |770.713.1505 | Intown Atlanta GA Condo Living - Atlanta, GA
Midtown Atlanta GA Condos For Sale

UGH! I have an appointment at that time. I hope you'll make it available at AR University!

Apr 11, 2013 09:18 AM #27
Rainer
299,954
Lehel Szucs
All Seasons Real Estate, Inc. - Covina, CA
REALTOR of choice

working on rewamping everything .. .the real idea is to always change and prepare for what is ahead .... 

Apr 12, 2013 03:57 AM #28
Rainmaker
193,329
Joy Carter & Jeff Booker Brother and Sister Team
Keller Williams Parkland/Coral Springs Realty-GreatFloridaHomes Team - Coral Springs, FL
Trust Your Family's Move To Our Expertise!

I am always fascinated by research that depicts trends and forecasts market futures. I am re-blogging this data, even though it is largely geared to Realtors.  Thanks!  Joy

Apr 14, 2013 09:24 AM #29
Anonymous
Morten Pedersen

This is a great article with usefull information. Thanks.

Apr 17, 2013 07:30 AM #30
Rainer
205,020
Mark Delgado
houses for rent, Solano County & Glen Cove - Benicia, CA
Benicia and Vallejo, Property Management, rental h

I like the way that you've presented this information.  One aspect that would be hard to graph is the comparison of where "you" stand in comparison to your competition.  Not that other's shortcoming should be the source of your own success but there is a real difference in the relative strengths of companies local to each other as opposed to the "aboslute" data you presented.

Apr 21, 2013 02:57 AM #31
Rainer
15,216
Mortgage Capital Associates
Mortgage Capital Associates - Los Angeles, CA

There's something poetic about the notion that we are currently between Panic and Euphoria. Thanks for the great charts - they really illustrate the grand changes we've gone through.

Apr 23, 2013 06:38 AM #32
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Nikesh Parekh

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