Are You Leaving Leads on the Table When It Comes to Latinos?

What if I said, "Hey, let's just not target 15% of the available homebuyers out there!"? That would be silly wouldn't it? That would be like ignoring every sixth person that comes into the sales office. When we don't do anything to cater to the fastest growing demographic in the U.S., that's essentially what we are doing.

A 2006 Harvard University study shows that Hispanics represent 14.6% of U.S. homebuyers, and this number is growing rapidly. I did not have a more recent stat handy (this is a blog, not a thesis), but one can only assume this percentage has increased as the Hispanic population has increased.

But you would be amazed at the excuses I hear in our industry about why we don't do anything to cater to this very critical and increasingly critical demographic...it almost becomes comical at times and sounds very much like the whining I hear at home about brushing teeth or doing homework or wearing underwear. (Well, he is only 9.)

Probably the most pervasive excuse I hear for not targeting Hispanics in the new home industry is that there seems to be this fear that we have to go completely Latino in all aspects -- translate our website, our collateral, and our contracts; have bilingual sales agents, and, and, and,...Slap yourself. It is almost as if we are fearful that a bit of Hispanic marketing might work, and, oh gosh, what will we do if we get a lead?!

Take a breath -- You don't need all of that; nor would such efforts be expected. Hispanics who live in the US are fully functional day-in and day-out in a bilingual world. Just take some small steps, which, in and of themselves, will be truly appreciated.

We are all human and get a real jolt when someone has taken a bit of extra care to appeal to us specifically. For example, it's not that the breakfast-in-bed that your kids bring you is all that tasty (and actually it can be quite scary). It is the thought and intent that was there. The same applies in any aspect of marketing. It's all about showing extra care and appealing to another human.

Take that first step, mis amigos, even if it's a baby step. Why not start by listing on Casas Nuevas Aqui?

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Melissa Morman, VP & GM, is one of the Founding Executives of Builder Homesite and New Home Technologies

Builder Confidence Steady

Sometimes, not changing is a good thing. According to the latest NAHB/Wells Fargo Housing Market Index (HMI), released this week (March 17), builder confidence in the market for new single-family homes stayed the same for March, and NAHB experts predicted recovery later this year.

“NAHB applauds the Federal Reserve’s aggressive actions in response to escalation of financial market pressures,” said David Seiders, NAHB chief economist, in a press release. “Provided that the necessary actions are taken promptly, a housing market recovery most likely would take shape by the second half of this year.”

The NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as either “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor.

The index gauging current sales conditions for newly built single-family homes held firm at 20 while the index gauging traffic of prospective buyers stayed at 19, following a significant gain in February. For more: http://www.nahb.org/news_details.aspx?sectionID=0&newsID=6447.

(Photo credit: PennyWise, Stock Exchange. Thanks!)

Home Builders and Baby Boomers

Builders with excess inventory to move should concentrate on what might just be the one segment of the market with the funds to move it: “seasoned” homebuyers.

According to an NAHB study released at the International Builder’s Show this year, those buyers who are 50+ “have substantial equity in their existing homes and greater accumulated wealth," says Mark Stemen, senior vice president with K. Hovnanian's active adult division in the mid-Atlantic and a member of NAHB’s 50+ Housing Council.

These buyers are all about lifestyle – and a very active one at that – so don’t give ‘em rocking chairs on the front porch. Rather, it makes more sense – and might just mean a sale – if you give them space to park their plane, scooter or vintage Aston Martin; a marathon training group; wine tastings; and progressive dinner clubs.

(Photo credit: R. Borsanell, Stock Exchange. Thanks!)

Industry Pulse

Welcome to Industry Pulse.  Using data supplied by New Home Source web analytics, we have calculated the 10 biggest gaining and dropping U.S. new home markets for online searches by visitor traffic for October over September.  Stay up-to-date on the state of the market with Industry Pulse.

New Home Source is the web's leading online new home marketplace.  Consumers use simple search tools to find the homes and communities that suit them best and they can download instant brochures on all their favorites.  Builders market their homes and communities using descriptions, photos, maps, plans and more and receive highly qualified leads. 

NAR Blasts DOJ Real Estate Web Site

The National Association of Realtors officials lashed out in an online commentary this week against a 'Competition and Real Estate' Web site launched earlier this month by the U.S. Justice Department's Antitrust Division.

It is the latest clash for the trade group and the federal agency -- two years ago the Justice Department filed an antitrust lawsuit against the Realtor group, charging that it approved overly restrictive policies for the online display and sharing of property information. That lawsuit is ongoing.

The Justice Department Web site promotes the benefits of competition in the real estate industry and highlights potential barriers to competition. Last year, the U.S. Federal Trade Commission -- another agency that targets anticompetitive practices -- launched its own Web site focused on competition in the real estate marketplace.

The Realtor trade group charges in its online commentary that there are 'few facts' and 'much fiction' at the Justice Department's real estate competition Web site.

Justice Department officials have said the site is intended to educate consumers and policymakers about competitive issues. The site highlights state measures that mandate a list of brokerage services -- sometimes referred to as minimum-service laws -- that consumers must receive whether or not they need all of the services, and state restrictions on real estate rebates to consumers as examples of barriers to competition.