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Karen France's REBR 2010 mid year meeting presentation

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Karen France's 2010 KAR Midyear presentation

Karen France's 2010 KAR Midyear presentation


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  • 1. INDUSTRY UPDATE KAR 2010 MIDYEAR MEETINGS PRESENTED BY KAREN FRANCE PRESIDENT & CEO REAL ESTATE BUSINESS RESOURCES, INC JUNE 10, 2010
  • 2. While you are gathering… If you have a smartphone (one that can download apps), download these: 1. Neoreader 2. Go to gettag.mobi in your browser and download the app
  • 3. Topics ¨ Current Market Statistics— ¤ Kansas ¤ National ¨ NAR Board of Directors Actions ¨ Houselogic ¨ 2009 NAR Profile Home Buyers And Sellers ¨ 2010 Member Profile ¨ Social Media ¨ Google
  • 4. 2010 Kansas Statistics with Year-Over-Year Comparisons % of Average Active Months Sales Price List DOM Listings Supply Price January 1237 $158,919 96.3% 107 15,805 12.8 -7.8% +13.7% +.4% -4.5% February 1611 $143,109 96% 98 16,657 10.8 -7.1% -1.6% +.2% -5.8% March 2375 $154,559 96.4% 104 18,049 7.6 +5.8% +6.3% -1.4% -3.7% 1st 5,166 $153,018 96.2% 102 Not Not -2.9% +6.2% -.5% -5.6% applicable applicable Quarter April 3,242 $155,670 97.2% 99 18,459 5.7 +42.5% +2.3% +.3% +3.1%
  • 5. April 2010 REAL Trends Housing Market Report ¨ April 2010 housing sales were up 23% over April 2009 --the best month over month since November 2009 ¨ The average price of homes sold was also up 7.3% over April 2009 ¨ Unit sales were up in all 4 regions of the country
  • 6. April 2010 REALTrends Housing Market Report ¨ The market is reacting as most expected with housing consumers starting to move quickly to take advantage of the tax credits for first time and move up home purchases," said Steve Murray, editor of the REAL Trends Housing Market Report. ¨ "We expect that housing sales will continue to show strong increases in closed business on a year over year basis through the end of the second quarter of 2010. The deadline for contracts written is April 30 and the deadline for closing these deals is June 30, 2010.
  • 7. April 2010 REAL Trends Housing Market Report ü The increase in housing sales is the seventh month in a row where housing sales for the present month were above the same month from the prior year. ü And price increases just hit their fifth month in a row on the same basis.
  • 8. April 2010 REAL Trends Housing Market Report ü We expect housing sales for the year to be above the level of 2009 in the range of 4-7 % ü Home prices will continue to strengthen for at least the next three months but may level out thereafter. ü The upper end of most housing markets remains soft at this time with no apparent recovery at this time.
  • 9. MLS Sales across Kansas April 2010 - All Homes Lawrence 4% Rest of State Manhattan 18% 3% Kansas City 39% Topeka 9% Wichita 27% Active MLS Listings across Kansas End of April 2010 - All Homes Rest of State 20% Lawrence Kansas City 5% 42% Manhattan 3% Topeka 8% Wichita 22%
  • 10. How do things look going forward?
  • 11. REAL Trends Comment: Loss of tax credit has impacted housing sales as expected ¨ "May written contracts are down from 15 to 25 % from April results according to informal poll conducted by REAL Trends. ¨ The decline is similar in many respects to that suffered after November 2009 when the first tax credit expired. ¨ While closings in May and June will likely be above the same period last year the evidence suggests that closings in the second half of 2010 may be lower than the numbers recorded in the last half of 2009. ¨ Near record low mortgage rates are being offset by anemic growth in employment."
  • 12. 87% of homebuyers plan to use an FHA home loan ¨ The Home Buying Institute recently conducted a survey to measure the popularity and usage of FHA home loans. ¨ The first phase of the survey revealed that 87% of homebuyers plan to use an FHA home loan to finance their purchase. ¨ Of those, ¤ 53.8% said they wanted to use an FHA home loan for the smaller down payment, ¤ 19.2% said they thought the overall qualification process would be easier, ¤ 13.5% said they previously had trouble qualifying for a conventional loan, ¤ 7.7% said they had low credit scores and ¤ 5.8% felt their income was too low to qualify for a regular loan. ¨ This survey suggests further growth in the FHA's market share, which has already grown considerably in recent years. ¨ In the first quarter of 2010, almost half of all homebuyers used an FHA loan to purchase a home
  • 13. So what is a “normal” level of sales activity? Steve Murray examined sales history to see how many households “turned over” on an annual basis between 1980 and 2008. This is what he found: ¤ Between 1980 and 2008, when he extracted out the economic booms and recession periods, that averaged out to between 4.7% to 4.8%. ¤ Between 2003 and 2007 that ratio jumped to 6.4%. ¤ During recessionary times it was 4%.
  • 14. So what is a “normal” level of sales activity? Kansas Targets: ¤ 1,038,671 Households x 4.8%= 49,856 sales, or ¤ In recessionary times 1,038,671 Households x 4%= 41,546 sales According to NAR: n 2009—56,500 sales=5.4% n 2008—60, 400 sales=5.8% n 2007—60,932 sales=5.8% n 2006—65,887 sales=6.3% n 2005—66,806 sales=6.4% Find out what “normal” is for your market, plan from there.
  • 15. NAR Update
  • 16. NAR Directors Pass Sexual-Orientation Protections ¨ The Board of Directors passed a change to Article 10 of the NAR Code of Ethics barring REALTORS® from denying equal professional services on the basis of sexual orientation or from discriminating against any person on the basis of sexual orientation. ¨ Standard of Practice 10-3 was amended as well to prohibit discrimination on the basis of sexual orientation in any advertisements for selling or renting property. ¨ The Code of Ethics change must still go before the NAR Delegate Body for approval at NAR’s annual conference in November.
  • 17. NAR Financials Strong ¨ Although it’s been a difficult two years, NAR remains in strong financial shape. ¨ 2010 membership stands at 1,079,000, nearly 2 % above budget. ¨ The Board voted to ¤ maintain NAR dues at $80 and ¤ keep the Public Awareness Campaign special assessment at $35 for the three-year budget cycle, 2011–13.
  • 18. REALTOR Content Resource for HouseLogic (members.houselogic.com)
  • 19. 2009 NAR Profile of Home Buyers and Sellers
  • 20. According to the NAR Profile of Home Buyers and Sellers: How did you search for homes to purchase? 2007 2008 2009 Internet 84% 87% 90% Real Estate Agent 84% 85% 87% Yard signs 59% 62% 59% Newspaper ads or print 50% 47% 40% Open Houses 48% 48% 46% Home magazine or book, home ?% 77% 62% builders, television, billboards and relocation companies
  • 21. According to the NAR Profile of Home Buyers and Sellers: How did you find the house you purchased? 2007 2008 2009 Through their REALTOR ® 34% 34% 36% Through the Internet 29% 32% 36% Yard signs 14% 15% 12% Friend, neighbor or relative 8% 7% 6% Home builders 8% 7% 5% Print or newspaper 3% 3% 2% Directly from the seller 3% 2% 2% Home book or magazine 1% 1% <1%
  • 22. According to the NAR Profile of Home Buyers and Sellers: Usefulness of information sources among those buyers that used each source—Very Useful 2007 2008 2009 Real estate agent 70% 81% 81% Internet 78% 81% 77% Yard signs 29% 29% 42% Open house 24% 24% 12% Home builders 12% 48% 3% Newspaper advertisement 17% 29% 2% Home book or magazine 11% 27% 3% Billboard 8% 24% 31% Relocation company 6% 28% 9% Television 11% 18% 17%
  • 23. According to NAR Profile of Home Buyers and Sellers Where did you search for your home on the Internet?: 2007 2008 2009 ¨ Local metropolitan MLS Web sites 54% 60% 60% ¨ REALTOR.com 49% 48% 46% ¨ real estate company websites 44% 46% 46% ¨ real estate agent websites 40% 40% 45% ¨ for sale by owner websites 20% 19% 17% 12% 11% 9% ¨ local newspaper sites ¨ real estate web magazines ??% 6% 4% ??% 25% 30% ¨ ??other web sites with listings
  • 24. 2010 National Association of REALTORS® Member Profile
  • 25. Business Characteristics ¨ 59% are licensed as agents ¨ 89% function as agents ¨ 80% specialize in residential brokerage ¨ Almost 2/3 have website ¨ 10% have a real estate blog ¨ >50% use social media ¨ ¾ are certain they will remain in the business for 2 more years
  • 26. Typical agent ¨ 54 year old white female ¨ Married ¨ Attended college ¨ Has 10 years experience ¨ Had 7 transactions, same as 2009 ¨ Worked 40 hours per week, same as 2009 ¨ Earned 18% of their business from past customers & clients ¨ Spent a median of $220 for a website (down from $240) ¨ Works at a firm that employs 29 agents and brokers (was 23) ¨ Is a homeowner ¨ Almost 50% had at least one transaction involving a foreclosure ¨ 40% completed a transaction involving short sale ¨ 36% reported having generated some business from an open house
  • 27. Income & Expenses ¨ 70% compensated by a percentage split-commission ¨ Median business expenses fell from $5,810 to $5,480 (was $6,580 in 2007) ¨ Median gross income ¤ fell 3% in 2009 to $35,700 (was $36,700 last year) ¤ REALTORS® with n 16 years or more experience =$52,300 ($53,900 last year) n 2 years or less =$8,800 ($8,600 last year) Gross incomes: ¨ 40% =below $25,000 ¨ 16% =$100,000 or more
  • 28. Office & Firm Affiliation ¨ >50% affiliated with an independent non-franchised company ¨ Median tenure with their current firm: 5 years ¨ 73% reported receiving no benefits through their firm ¨ 12% worked for a firm that was bought or merged in the past 2 years
  • 29. Demographics ¨ 57% are female ¤ Over 60 yrs of age= 51% female ¤ Brokers= 51% female ¤ Full time agents=61% female ¤ Part-time agents=2/3 female ¨ 77% said real estate was their only occupation ¨ Median gross income of REALTOR households was $89,100—this number is dropping ¨ 9/10 own their primary residence ¨ Marital status ¤ 72% married ¤ 15% divorced ¤ 8% single, never married
  • 30. Voting ¨ Nearly all REALTORS® are registered to vote ¨ 93% voted in the last national election
  • 31. Education ¨ 90% have some post-secondary education ¨ 29% have a bachelor’s degree ¨ 18% had some graduate school education ¨ 11% have a graduate degree
  • 32. Social Media Think: How to engage people in a conversation ????
  • 33. If the Internet is the Information Highway, then Social Networking (Facebook, Twitter, blogging, texting, Youtube etc.) serves as the on and off ramps.
  • 34. Professional Networking & Marketing Opportunities Old School New School ¨ Church committees ¨ Blogs ¨ Neighborhood Think: How to engage associations people in¨aWebsites conversation ???? Wichita Chamber Website
  • 35. A way to inform yourself In the old days you read the newspaper to find out what is going on: Ø In your industry Ø In your community Ø In your world Ø With your friends Ø With your family Ø With your neighbors Ø With your past & potential customers & clients
  • 36. A way to inform yourself Now, people do this with: In the near future, there won’t be newspapers left to make the paper sculptures of our childhood:
  • 37. So what is driving all of this ???
  • 38. The Golden Triangle Social Content Location SmartPhone Based Explosion Services (GPS)
  • 39. One of the odder bits of data mined by the NCHS, however, claims that binge drinking is double the rate in wireless-only households compared to those with fixed lines, with 34.5% of wireless phone users having more than five drinks in one day, compared to 18.7% of landline users.
  • 40. Statistics üMore than 400 million active users ü50% of our active users log on to Facebook in any given day üMore than 35 million users update their status each day üMore than 60 million status updates posted each day üMore than 3 billion photos uploaded to the site each month üMore than 5 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) shared each week üMore than 3.5 million events created each month üMore than 3 million active Pages on Facebook üMore than 1.5 million local businesses have active Pages on Facebook üMore than 20 million people become fans of Pages each day üPages have created more than 5.3 billion fans Provided courtesy of: http://www.facebook.com/press.php#/press/info.php?statistics
  • 41. Statistics about average users The Average Facebook user • has 130 friends on the site • sends 8 friend requests per month • spends more than 55 minutes per day on Facebook • clicks the Like button on 9 pieces of content each month • writes 25 comments on Facebook content each month • becomes a fan of 4 Pages each month • is invited to 3 events per month • is a member of 13 groups Provided courtesy of: http://www.facebook.com/press.php#/press/info.php?statistics
  • 42. Mobile oThere are more than 100 million active users currently accessing Facebook through their mobile devices. oPeople that use Facebook on their mobile devices are twice more active on Facebook than non-mobile users. oThere are more than 200 mobile operators in 60 countries working to deploy and promote Facebook mobile products Provided courtesy of: http://www.facebook.com/press.php#/press/info.php?statistics
  • 43. www.realtor.com/seemylistings/
  • 44. Yes, Social Media can get you business! Joan Snodgrass Tri-Lakes Realtors, Shell Knob, MO (Tri- Lakes REALTORS) said 1 day ago, "My two latest listings came to me as a result of the sellers reading my blog on Active Rain. The clients told me they enjoyed reading my posts and felt that I was the most qualified person to list their property."
  • 45. Internet in the air and everywhere!
  • 46. So what’s it all about??? It is changing lives!!! It is changing business!!... and it is only just beginning!
  • 47. Knowledge Navigator 1987
  • 48. Even George W. Bush is on Facebook
  • 49. Consumer interactivity—LEVI’S Facebook fans are invite to pick the next face of LEVI’s
  • 50. Cisco prediction: Online Video Will Push Internet Traffic to Quadruple by 2014
  • 51. All things
  • 52. Google Real Estate
  • 53. Google Phone: Nexus One
  • 54. Google Sidewiki
  • 55. QR CODES (QUICK READ)
  • 56. QR Generators
  • 57. Take-Aways
  • 58. Take-aways 1. If you haven’t done it yet, at least go LOOK at Facebook & Twitter! 2. If you have looked at it, but not tried one of them TRY ONE OF THEM 3. If you don’t have an iPhone or a droid, borrow one of your friends and look at your listings to see how they are appearing!—Make sure they have an address on them so the GPS-located sites will find them! 4. Go to an Apple store and play with an iPad!—take a look at your listings to see what the pictures look like! (the higher resolutions look better)
  • 59. Take-aways 5. If you are on Facebook, attach your listings to your profile 6. Start texting (but not while you are driving!) 7. If you are on Facebook and/or Twitter, start having your updates for people you really like come to your cell phone so you don’t even have to see it on your computer! 8. Start Googling! 9. Start playing with these new toys—your customers and clients are!!
  • 60. Where do I get my information? INDUSTRY NON-INDUSTRY ¨ RealTrends ¨ Inman News ¨ Fast Company ¨ Realty Times ¨ AdAge Digital ¨ ALQ (Real Estate ¨ Springwise Intelligence Report) ¨ Trendwatching ¨ RisMedia ¨ Mashable ¨ Zillow ¨ Trulia ¨ ActiveRain
  • 61. HOW WOULD YOUR FAVORITE HISTORICAL CHARACTER HAVE USED TODAY’S SOCIAL MEDIA? From “Who’s Blogging What?
  • 62. How would your favorite historical character have used today’s social media? ¨ Scott Fox: “ I would love to see what Mark Twain would have done with social media. A master communicator, I'm sure his Tweets, podcasts, and FB comments would be both hilarious and insightful.” Ravit Lichtenburg “I’d love to see what Moses would do with Social Media. Imagine the power of crowd mobilization when a future of a People is concerned. Would he tweet ahead of the exodus, sing the hashtags #letmypeoplego and #badharaoh? How would he have kept the plans a secret? Would he have done a simulcast from Mount Sinai as he read the Ten Commandments? Would he de-friend Aaron once he found out on his mobile Facebook app about the golden calf? One can only imagine how things would have changed if social media existed in tribal times…or in any humanity- changing historic moment since.
  • 63. How would your favorite historical character have used today’s social media? ¨ Andy Beal: “Jesus. Forget Ashton Kutcher, Jesus would have more Twitter followers than anyone!” ¨ Joe Pulizzi: “ Jesus…just think of how fast his stories would spread through Twitter. For those who give their expertise unselfishly through social media, great things happen.” Jay Baer: “Robin Hood. He easily could have raised money with tweets and PayPal much easier. No arrows. No fights. No living in a forest (unless there was WiFi.)
  • 64. How would your favorite historical character have used today’s social media? Lisa Whelan: “Batman wouldn't need to use the Bat-Signal to light up the night sky in Gotham if he had Twitter, Facebook, You Tube, and LinkedIn.
  • 65. Have a Successful 2010 ! Real Estate Business Resources, Inc. Your Partner in the Real Estate Business Thanks to Our Business Partners!! ahswarranty.com firstamks.com