The past six years or so comprised one of the hottest real estate markets on record in which the industry enjoyed tremendous growth. During this period the country experienced a buying frenzy. According to some, the frenzy will have a hangover affect for the next few years as several variables adjust and correct themselves.
The minority and immigrant population segments, and hence the home buying and selling population, are not being served effectively currently, and the situation is getting worse by the day
Companies that don’t reach critical mass, the equilibrium point where growth becomes self-perpetuating, will struggle and often disappear, while those that gain that “magical” level usually become market leaders, very profitable and household brands.
The residential real estate brokerage industry, along with other industries and professions, is currently dominated by the Baby Boomers. As the Boomers make way for Generations X and Y, the world is gradually dealing with the change – real estate included.
There are unquestionably too many licensed real estate agents today and the barriers to entry are unacceptably low. More extensive and higher-quality education and training would be a positive step in improving the quality of entrant, the level of ultimate consumer service and the overall image of the real estate agent and the industry.
The real estate industry, which over many years has become complacent in its marketing methods and approaches, needs to re-evaluate how it markets “Homes For Sale.” Individual agents must adapt quickly to counter the efforts of outsiders and internet companies
After four decades the MLS systems working reasonably smoothly, the industry has now entered a stage in which brokers and agents don’t really know what they have on their websites, or for that matter what information of theirs is on some else’s website.
Listed within are the top 15 trends listed in the 2006 Report with the executive summary used in that Report. Beneath each we have provided a short commentary as a type of report card and as a transition to the 2007 Report.
The Internet has become the most powerful tool in real estate, both as a research device and as a marketing medium. The web has totally changed the consumer’s focus in selecting a media containing the desired data.The challenge for brokers and agents is to find a dynamic blend of print and Internet advertising in order to create one balanced channel that meets the specific needs of their segmented and fragmented real estate consumer. The potential for those who succeed may be a significant increase in market share.
Technology has significantly influenced the way the real estate marketplace operates. The pace of technological change has been startling. However, the Internet is a very dynamic beast, and although we as an industry have advanced with e-mail and e-commerce, we have more coming down the pike, including ASP, Wi-Fi, broadband, and blogging.