2006-2007 Report Review
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.
Slicing the Marketing Pie – Chasing the Consumer
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
With a Poor Image and Lack of Knowledge it’s Time for the Instrustry to Stop – The Swinging Door
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.
Consumer and Realtor Demographics are Being Shaped by the – Young, Daring and Smart
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.
Brand Recognition, National Reach, Critical Mass – The Race is On
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.
Globalization, Immigration and Growing Demand for US Property Can Create – The Tipping Point
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
The Bubble, Exotic Loans, Fraud and Declining Commissions Have Created – The Hangover
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.
Trends on the Fringe
Trends on the Fringe reviews trends that did make the top 15 for the 2006 report. This includes discussions on mortgage fraund, thinking globally and acting locally, generations x and y, data security, and the restructing and rebuilding of Realtor® associations
Rebirth of a New Middleman – Lead Generation
Numerous attempts to reduce the role of the agent in the home selling and home buying transaction will continue. The recent strong growth of the lead generation initiatives are raising concern among some, since they feel the existing commission pie is being pre-sliced. Increasing dependency on these leads may also allow for price increases that will further exacerbate the situation.
The Proliferation of Business Models
Competition in the residential real estate brokerage industry is immense and intense. Brokers and agents are increasingly assailed by a large
selection of business models, products, commission structures and Internet options. In reflection, one can see that previous business models and trends significantly influenced the industry. For example, the growth of multiple listing systems in the 60’s, the franchising of the 70’s, the 100% concept in the 80’s, and technology in the 90’s. There can be little doubt that something different will again cause a major shift in the industry.