Monthly Real Estate Marketing Review: Limited Housing Inventory and Home Saving Challenges
By Carolyn Berk
About Inbound Marketing
November 2017 was a busy month for real estate professionals. As 2018 approaches, many agents and brokers are simultaneously looking backwards at their real estate marketing challenges and accomplishments while planning for the year ahead.
Are you caught up on all the news, developments, and insights needed to create a comprehensive real estate marketing plan for next year? Find out what you may have missed – and what you should expect – with the roundup of real estate marketing news below.
1. A Smaller Housing Inventory Is Causing Prices To Soar
Zillow predicts a tight housing market in 2018. According to its report, inventory shortages will result in 12% fewer properties for home buyers to choose from.
Sellers will be in control next year, as the number of available homes on the market will continue to decrease as it has for the past seven years.
Zillow forecasts that this will result in several significant housing market trends:
- Home prices will grow. In fact, Zillow expects prices to climb 4.1% next year.
- Millennials will have a harder time finding homes within their price range. This will lead to more searches for lower-priced properties in the suburbs.
- Builders will focus on entry-level homes in order to feed a hungry market.
Because the youngest generation of home buyers will have an especially difficult time searching for a new home, it will be more crucial than ever that real estate professionals know how to address their needs and concerns.
There are several real estate marketing techniques that you can use to attract millennials navigating the housing marketing. These include:
- Selling your real estate expertise and helping guide the way through every step of the home buying process. Focus on financial concerns, such as offer coaching and determining which mortgage type is right.
- Sharing how your skills can help save money throughout the home buying journey. Small things, like assisting with contract negotiations or mortgage lender references can have a huge impact.
- Making sure that you create an eye-catching website with properties within the right price range. Millennials want to know that attractive properties are still within their reach – and their budget.
2. Rising Rents are Making it Harder to Save for a Home
Another challenge is expected to impact home-buying in 2018. As Zillow reports, renters are having a harder time saving up to buy a home.
The problem stems from the rising cost of rent, which is eating up more income and making it difficult to save enough to buy.
According to Zillow, stagnant incomes and rising rent are costing renters an extra $2,000 every year. Renters in the nation’s largest markets, such as San Francisco, are spending an even larger percentage of their income on rent.
Real estate professionals who are aware of these home buying challenges will be better suited to address this group of struggling renters.
Here are a couple real estate marketing tactics to try:
- Promoting home buying as a financially responsible way to escape the cycle of savings-draining rent.
- Touting your connections with local designers and contractors that can make a lower-priced fixer upper more attractive to price-conscious home buyers.
3. NAR Sees a Good Market for Real Estate Professionals
As the National Association of REALTORS® highlighted in its November 2017 Housing Minute video, there were several other newsworthy industry updates to follow.
Among the headlines highlighted in the video:
- In the third quarter of 2017, the media sale price of single-family homes in the U.S. rose 5.3% from last year. In fact, 92% of metro areas in the country saw rising prices last quarter.
- Median sales prices in November increased 5.5% from last year. That’s the 68th straight month of year-over-year gains!
- There were 1.80 million active listings in November, a -10.4% decrease from last year.
According to Lawrence Yun, NAR’s Chief Economist, “Supply levels remain weak, but strong job growth and higher wages are giving households added assurance that now is a good time to buy a home.”
4. Facebook Launches Business Marketing App
Facebook has long been a hub for real estate professionals to promote their services, market their valuable content and share their hottest new listings.
In November, Facebook announced the creation of a new app designed to help content creators in all industries with their marketing efforts.
The Facebook Creator App allows real estate professionals to easily create original video, film and share live videos, and manage communication with their audience and prospects.
Most importantly, the app provides insights so you can measure the success of your content. For example, if you’ve shared a live video of a tour of a newly listed property, you can see when viewers were most engaged with the video, such as when you shot the property’s living room or newly-remodeled kitchen. This way, you can determine which rooms are the stunners and strongest selling points for interested prospects.
Facebook’s app is open to individuals on Pages or profiles. It is currently only available on iOS; however, Facebook says the app will be rolling out to Android users in the coming months. The social site has also launched a website with resources and tips to help you create better videos and connect with viewers.
5. 25 Million Businesses Have an Instagram Presence
Facebook wasn’t the only social network with big news last month. Instagram reached a milestone: 25 million business accounts are now on the photo-sharing site.
It’s easy to see why so many businesses, including real estate agencies, are drawn to Instagram. 800 million people use Instagram each month, with 80% of accounts following a business.
Instagram is a great location to promote visually-based content. The emphasis on images, rather than words, allows real estate professionals to let their most stunning properties shine.
If you haven’t yet included Instagram in your real estate marketing strategy for 2018, be sure to know and follow best practices before you start out:
- Publish your own photos and videos, instead of reposting promotional images from someone else.
- Don’t use or alter stock photos for your account. Realness is important on social media, and Instagram audiences will immediately be able to tell if the images you provide are authentically yours.
- Don’t make your content all about you. If you want to show audiences that you are about your clients, then be sure to spotlight them with customer testimonials or share recent closed deals.
If you’re not sure how to make Instagram work for your real estate business, you can explore these posts and strategies from top real estate Instagram accounts.
Which digital marketing channels and techniques are a must for today’s busy real estate professional? Find out when you download our free eBook.
Published on December 4, 2017
Written by Carolyn Berk
I am a Content Marketing Associate at Placester, where I regularly share helpful real estate marketing strategies through Placester’s Academy.