Marketing Forecast from Ad-ology

Stung by the collapse in the home ownership market, consumers continue to move into rental housing. And landlords are taking advantage of the interest in rentals by raising the rent. As a result, more consumers now say they are looking around for new apartments which may give rise to more advertising in this market.

In a report I highlighted earlier this week, the best that can be said for the housing market is that some geographic regions are seeing gradual recovery. Because of the general economic conditions across the U.S., both realtors and builders may fare well by focusing on specific demographic groups as they build and sell new residences. A study on the senior housing market by Robert Charles Lesser & Co. shows that targeting upper income seniors could be lucrative for marketers.

Is the market for existing homes ready to turn a corner? The National Association of Realtors (NAR) believes so but the market may not recover in the way it typically has following recessions. However, homes are selling in many markets which means realtors are advertising more listings.

Even as the economy continues to recover, the real estate market is struggling. Home prices are still falling in many markets and few analysts expect to see the number of house being sold to jump drastically anytime soon. The increased competition has realtors turning to a variety of new marketing tactics to make a sale.

Realtors and other professionals that cater to the property market are preparing to enter the typically busy season for home sales. Several economic indicators point to a slower than average market this year. Continued high levels of unemployment and difficulties in obtaining financing are 2 problems that may crimp housing sales. But this year’s report by The Cotton Solution shows that the vacation home market may be recovering.

Last week, the National Association of Realtors announced that the index of sales agreements on existing homes rose 10.4% in October. Though this represented a significant increase over previous months this year, signings remain at least 20% below October 2009 levels.