Marketing Forecast from Ad-ology

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.

By any count, there is a significant number of foreclosed properties either already on the market or about to be listed for sale. RealtyTrac analysts expect the number of foreclosed homes to affect the housing market through 2014. But according to Harris Interactive, U.S. consumers aren’t always lining up to purchase these properties.

The financial markets signaled excitement about rising home sales by closing higher on Monday. Most investors welcomed the good news that home sales in October had risen for the second month in a row. Experts believe more buyers are coming into the market because of two factors: Falling prices and the federal tax credit for first time home buyers.

Nearly one in eight higher income consumers said social media influenced their choice of real estate services, the highest of all media types, according to the Summer 2009 Ad-ology Media Influence on Consumer Choice survey. Of online, social, and traditional media, online media had the most influence across all demographics. Real estate agency Web sites were the most influential online media. The lucrative 25-to-34 age group was noticeably more influenced by video than other age groups.

Nearly one in eight higher income consumers said social media influenced their choice of real estate services, the highest of all media types, according to the Summer 2009 Ad-ology Media Influence on Consumer Choice survey.