Marketing Forecast from Ad-ology

Ad-ology Research recently updated their Industry Marketing Insights report for Home Inspection Services.

When the real estate market started its steep plunge in 2007 and 2008, the ad market for this sector dropped as well. A recently published report by Borrell Associates points to a 20% decrease in real estate marketing during 2009 which brought total spending from $24.4 billion to $19.6 billion. But the outlook for 2010 is improving in the category.

As the housing market continues to struggle, builders are seeking demographic groups that represent potential buyers. Consumers in the 55+ demographic comprise one segment that might be willing to purchase a new home, if the price and the amenities are right. According to jointly funded research by the National Association of Home Builders and MetLife Mature Market Institute, up to 12% of consumers in this group plan to buy a home and about 26% are undecided about their future purchase plans.

Years ago, running an ad campaign during TV soap operas was a safe bet for any marketer wanting to reach the female demographic. Times have changed. Women’s TV viewing habits have become as diverse as their demographics.

The federal tax credit for first-time home buyers has been extended through the end of April 2010. Generally, lower home prices and the tax credit extension are key factors in luring first-time home buyers into the real estate market. The National Association of Realtors reported that first-time buyers comprised 47% of the 2009 market share. In 2008, first-time buyers made up only 41% of the market.

It might be the result of the shrinking family size in the U.S. Or it might be linked to consumers’ budgetary concerns. But there’s a new trend in the country’s housing market – think small.