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Real Estate Trends Session 2008
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Real Estate Trends Session 2008


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Sales meeting presentation on trends in the real estate business

Sales meeting presentation on trends in the real estate business

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  • As far as real estate market in India goes, it's still fairly unorganized and unregulated...there are very few professional players like us... ;)
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  • Transcript

    • 1. Good Morning Ballantyne “ Any type of real estate market is always good for someone.”
    • 2. Current Trends in Real Estate
      • CRRA Trends Session facilitated by Jerry Matthews
        • May 7 th and 8 th
        • 8 presenters via teleconference and visual aids
        • CRRA/CMLS Officers and Directors
          • 2008 Candidates
        • An opportunity to interact with some of the most sought after “influencers” in the real estate space.
        • Preparation for the Strategic Planning Retreat, June 18 th and 19 th
        • “ Real estate professionals may need to rethink their assumptions in order to be sure they are still providing services that their customers want.”
    • 3. Current Trends in Real Estate
      • Member Survey
        • 11,157 surveys, 2,041 responses = 18% response rate
        • Significant observations:
          • “ My membership in CRRA provides good value for me.” 71% Agree or Strongly Agree
            • 12% of Brokers (non-owners) Disagree or Strongly Disagree
          • CRRA keeps me well informed on government actions that affect my business.” 77% Agree or Strongly Agree
          • 27% of members made $20,000 or less, 37% made $30,000 or less
          • 20% of Salespersons made $10,000 or less, 33% made $20,000 or less, and 44% made $30,000 or less.
          • Members making $20,000 or less have household income of $40,000 or more
          • Members making $30,000 or less have household income of $60,000 or more.
    • 4. Current Trends in Real Estate
      • Member Survey
        • Significant observations:
          • 45% of members have been in real estate 5 years or less
          • 67% of members have been in real estate 10 years or less
          • 53% of salespersons have been in real estate 5 years or less and 73% have been in business 10 years or less.
          • “ CRRA’s stance on political issues represents my point of view”, only 44% of members Agree or Strongly Agree. 17% of Broker/Owners Disagree or Strongly Disagree.
          • “ Volunteering for CRRA is important to me”, 21% of members Agree or Strongly Agree with 21% Disagree or Strongly Disagree. 58% are neutral.
          • 61% of respondents and 64% of sales associates are female.
          • 73% of respondents are sales associates.
          • 52% of respondents are Republican, 28% Democrat
          • 42% of respondents are with single office firms and 71% are in firms with 5 or fewer offices
    • 5. Current Trends in Real Estate
      • Member Survey
        • Significant observations:
          • Highest rated services: MLS, CSS, Professional Standards, Code of Ethics, Education, Professional Development, Public Awareness, Realtor image campaign
        • Comments
          • “ new square footage range is unprofessional, inaccurate, and driven by lazy, incompetent agents”
          • “ Tempo MLS is antiquated and not really web-based. Not compatible with devices and software today…”
          • “ CSS not efficient or responsive in timely manner. Service and fee were forced on membership.”
          • “ CRRA dues and MLS fees seem high compared to contiguous Associations.”
    • 6. Current Trends in Real Estate
      • John Tucillo, Ph.D., JTA LLC, consultant
      • Credits:
        • Former Chief Economist for NAR
        • Clients; FNMA, Microsoft, FNIS, GMAC, PREA, Re/Max, Cendant, Ellie Mae
        • “ Eight New Rules of Real Estate”, “Click and Close”, “New Business Models for the New Economy”
      • Next 2 quarters 1% growth in economy
      • Real income fallen 2% since 2006 (hidden by home equity piggy bank)
      • 2009 economy will recover but with inflation !
        • driven by commodity prices, weak dollar, liquidity crisis
        • Long term rates will rise 2%
      • Pent up housing demand will begin to emerge in 2009
      • Demographic trends will shape housing going forward
        • Understand generational differences
        • Watch how consumers use technology
      • Going forward emphasis will be on “managerial talent”
    • 7. Current Trends in Real Estate
      • John Tucillo, Ph.D., JTA LLC, consultant
        • How to spot a turnaround market:
          • DOM begins to fall
          • Sales price to list price going down
          • Drop in new listings
        • Generational differences affect real estate business
          • Boomers: little distinction between work and personal life
          • Gen X: give me what I want…now!
          • Gen Y: gotta be me!, get a life
          • Real Estate must change the way the business is conducted
            • Lots of implications for Boards of Realtors
          • Get younger faster! Go where the consumer is going…it’s expected!
            • Consumer is more and more ahead of the real estate professional in pushing the envelope of technology.
    • 8. Current Trends in Real Estate
      • Stephan Swanepoel, Futurist
        • Credits: Swanepoel Real Estate TRENDS Report, “Real Estate Confronts Reality”, “Real Estate Confronts the Future”
          • CEO Realty U, Inc., CEO iSucceed, Inc., CEO CreateAPlan Inc.
      • Top 10 Trends
        • Shattered Glass (women, youth, minorities step up to leadership)
        • 9. Thought Reform (DNA of the “new” real estate professional) (transparency)
        • 8. Clash of the Titans (big get bigger…common good?)
        • 7. Tug of War (niche models…The Long Tail)
        • 6. Gone in 60 Seconds… (data theft is rampant)
        • 5. Search for Productivity (agent productivity continues to fall despite technology)
        • 4. Four weddings and a funeral (the future of MLS?)
        • 3. New digital economy (evolution of the web…Web 2.0)
        • 2. Pop goes the weasel (bubbles burst!)
        • 1. Two worlds, One history (online communities, blogs, wiki, social media)
    • 9. Current Trends in Real Estate
      • Justin McCarthy, Google Strategic Partner Development Team
        • Credits: formerly with DoubleClick, General Manager, Entertainment & Travel Networks, NY Times and Hartford Media, BA English Trinity College
      • 250,000 real estate searches per hour = 6,000,000 per day = 21 billion per year
      • Google attracts 60% of all real estate searches and 36% of all agent or broker searches
      • Google Base; view listings directly as opposed to going to Broker/Agent sites
        • Mapplet interface with social overlays (Google Gadgets)
        • “ Permissioning” (getting free content feeds)
      • Virtuous User Cycle
    • 10. Current Trends in Real Estate
      • Ed Krafchow, Pres. Prudential CA/NV/TX Realty
        • Credits: 5,000 agents, 139 offices, $14 Billion sales, 8 th largest privately held company in USA
      • Stop trying to “train” the customer
      • No industry ever re-invented itself in an “up” cycle
      • We’ve become “generalists”
        • New appeal is to the niche markets,
          • “ specialists” starting to prevail
        • Are you prepared to niche down?
          • Positioning is key!
        • Can you meet the experience expectation ?
      • From “content” to “context”
        • From text to mapping, Google Earth is “contextual”
        • Crafting the consumer experience…less onerous and more like entertainment
          • What is the secret to Car Max’s success?
        • Where does the professional sales associate fit in this picture?
    • 11. Current Trends in Real Estate
      • Ken Jenny, CEO, consultant
        • Credits: former Sr. VP PREA, COO Coldwell Banker, NA
      • “ In times of change, it might be a good time to change.”
      • Market goes normal (60% of the old market is still there)
      • Cycles are a reality and predictable
      • Lending with Caution! (lax lenders penalized)
      • Consumers freeze! (industry adopts a “deer in the headlights” posture)
      • Painfully operated brokerage (many sins uncovered, kingdoms expensive to operate)
      • Industry shrinkage (it’s all about the math!)
      • Media evolution (online, offline vs. inline ) consumers transition speedy
      • Enie, meanie, minie, GO!
      • Internet calls are not LEADS!
      • The never ending transaction: taking
      • customers for life to a whole new
      • level.
    • 12. Current Trends in Real Estate
      • Shannon McIntyre Skousgaard, Ph.D., George Mason Univ
        • Credits: US Chamber of Commerce, NAR, IBM, Xerox, AT&T, German Marshall Fund, “Decision Making for Incompetent Persons: The Law and Morality of Who Shall Decide”
        • “ We are what we repeatedly do.” This is our culture.
        • In Western culture all persons have infinite worth and dignity.
        • Integrity is the foundation of culture
        • What is a Profession?
          • Body of knowledge
          • Knowledge that serves the good of individuals and the common good
          • Standards of excellence are elected and set by the practitioners
          • These standards are enforced by the members
        • If the standards are not enforced by the group…someone else will!
    • 13. Current Trends in Real Estate
      • Shannon McIntyre Skousgaard, Ph.D.,
      Knowledge , skills (short term) Ethics (long term)
    • 14. Current Trends in Real Estate
      • Richard Mendenhall, Chairman International Consortium of Real Estate Associations
        • Credits: former President NAR 2001, owner three real estate offices, family business since 1894
      • Is the Realtor at the center of the transaction?
        • “ The Realtor must be at the center of the conversation , not the center of the transaction.”
        • “ If you wait until the transaction, it’s too late. Consumers are establishing relationships earlier online.”
        • A trusted advisor is at the center of the conversation about real estate well before someone lists or buys.
      • “ Get your mind right!”
        • $36 billions spent annually on our pets, $1 billion spend annually on cancer research
      • Information is the oil of the New Economy!
      • Separation of Board and MLS for tax purposes deters us from evolving new data strategies
      • Future of MLS being defined right now…property data will be aggregated, if not by Realtors, then by __________.
      • From “sales associate” to “business associate” (think “Trusted Advisor”)
      • No one can drive into the future on cruise control!
    • 15. Current Trends in Real Estate
      • Richard Green , Ph.D ., Oliver Carr Chair of Real Estate Finance and Professor of Finance, George Washington Univ.
        • Credits: Ph.D. University of Wisconsin, Economics, AB Economics, Harvard, A Primer on US Housing Markets and Housing Policy
      • Movement away from government-guided mortgage systems to market-based systems
      • Monetary policy fights inflation; nominal interest rates fall
      • Mismatch of deposits location to housing need
      • ARMs to the rescue in the 1980’s
      • Corruption of the Secondary Market during the 90’s and beyond. No regulation!
      • Who will buy this “crap”?
      • Mortgage securitizers have no skin in the game
      • Lessons learned:
        • Mortgage markets linked to capital markets function better, but with regulation
        • Stability of economy crucial to stable mortgage market. Deficits kill!
        • Underwriting is key! Must be accurate & responsible. Get skin in the game!
    • 16. Current Trends in Real Estate
      • The Cycle of Change
        • “ No one needs a reminder that this is a cyclical market. But it’s important to understand that changing conditions present opportunities to reexamine your business model and define your own future.”