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Good Morning Ballantyne “ Any type of real estate market is always good for someone.”
Current Trends in Real Estate <ul><li>CRRA Trends Session facilitated by Jerry Matthews </li></ul><ul><ul><li>May 7 th  an...
Current Trends in Real Estate <ul><li>Member Survey </li></ul><ul><ul><li>11,157 surveys, 2,041 responses = 18% response r...
Current Trends in Real Estate <ul><li>Member Survey </li></ul><ul><ul><li>Significant  observations: </li></ul></ul><ul><u...
Current Trends in Real Estate <ul><li>Member Survey </li></ul><ul><ul><li>Significant  observations: </li></ul></ul><ul><u...
Current Trends in Real Estate <ul><li>John Tucillo, Ph.D., JTA LLC, consultant </li></ul><ul><li>Credits: </li></ul><ul><u...
Current Trends in Real Estate <ul><li>John Tucillo, Ph.D., JTA LLC, consultant </li></ul><ul><ul><li>How to spot a turnaro...
Current Trends in Real Estate <ul><li>Stephan Swanepoel, Futurist </li></ul><ul><ul><li>Credits:  Swanepoel Real Estate TR...
Current Trends in Real Estate <ul><li>Justin McCarthy,  Google Strategic Partner Development Team </li></ul><ul><ul><li>Cr...
Current Trends in Real Estate <ul><li>Ed Krafchow, Pres. Prudential CA/NV/TX Realty </li></ul><ul><ul><li>Credits: 5,000 a...
Current Trends in Real Estate <ul><li>Ken Jenny, CEO TranCen.com, consultant </li></ul><ul><ul><li>Credits: former Sr. VP ...
Current Trends in Real Estate <ul><li>Shannon McIntyre Skousgaard, Ph.D.,  George Mason Univ </li></ul><ul><ul><li>Credits...
Current Trends in Real Estate <ul><li>Shannon McIntyre Skousgaard, Ph.D., </li></ul>Knowledge , skills (short term) Ethics...
Current Trends in Real Estate <ul><li>Richard Mendenhall,  Chairman International Consortium of Real Estate Associations <...
Current Trends in Real Estate <ul><li>Richard Green ,  Ph.D ., Oliver Carr Chair of Real Estate Finance and Professor of F...
Current Trends in Real Estate <ul><li>The Cycle of Change </li></ul><ul><ul><li>“ No one needs a reminder that this is a c...
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Real Estate Trends Session 2008

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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 of "Real Estate Trends Session 2008"

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