Market Observations – Q2 2009
June 30th, 2009 at 10:54am
As part of our continued effort to better understand the real estate environment and share knowledge during these challenging times, we asked a group of trusted advisors, industry leaders and overall smart real estate folks to share their observations about what’s happening in the marketplace.
There are some notable changes from Q1:
- Lack of management experience is a big factor – lots of confusion about what to do next.
- Increased pursuit of any and all types of “efficiencies”. How can I cut cost and still do more.
- Continued financing hurdles for those that want to buy – especially on home sites.
- Buyers perception is that you can get 25% – 40% off at present. They all want foreclosures or short sales….then it’s tough to get them financed.
- Pre-development communities are stagnant or dead.
- New development ownership and private capital on the rise.
- Interested prospects want completed communities – show me the clubhouse, let me play the golf course, what time is dinner?
- We are using the web and social networking much more. Must be targeted rather than mass media.
- Most prospects are jumpy and just won’t spend cash or go further in debt.
- On site agents have to relearn the art of selling.
- Follow-up is the key! Must be more frequent and more creative.
- Sales consultants have to be just that — consulting on financing, timing, market competition and they better be well versed in the competition too.
- A strong, trusted brand even more relevant than ever before.
- Developers lacking a positive and strong track record are dead in the water in this environment. People will not trust un-proven developers.
- Still watching for signs of positive consumer confidence – starting to see some now!
Add your feedback below….
Seems to be right on! I know we are spending all our energy on doing more with less and reinforcing the fundementals!
The changing of the guard at viable communities and the abundance of private equity funds will probably provide the most positive impact long-term.
Agree with all of the above. Figuring out how to use social networking will be a key to future success. If done effectively, can be a powerful and affordable tool. We have responded to market demand regarding pricing. People want high quality amenities with homes at prices that will not “mortgage their future”. I feel we have hit the nail on the head. http://www.yourlifesmarthome.com
Our menu to a successful opportunity right now is…
1. amenities in place
2. built product
3. perceived value
4. drive to market
These are keys for the developments we are working with right now that are successful. (www.Echotanc.com, over 90 closings last year, ahead of that pace this year!)
Ditto all the above. Also, we’re finding that customers who bought homesites are now looking at and investing in existing structure. We’ve had good results with builder home sales over the past quarter.
Also, creative negotiating that meets the customers specific needs/wants is crucial.