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

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.