Sunday, July 01, 2007

Cue the Marketing Mavens

From the Sacramento Business Journal:

Scavenger hunts and concert sponsorships are just a couple of the more creative tools that marketing firms have recently unveiled to lure potential buyers to a sluggish new-home and condominium market.
...
Greg Paquin, a new-home analyst and founder of The Gregory Group, said price cuts and incentives are now widespread, so homebuilders are looking for new ways to distinguish themselves. "The philosophy is: 'Let's get people in the door before they go next door,' " Paquin said. "Everyone's trying to be unique and stand out from the crowd."

Advertising has become common on radio, with live presentations at new-home sites; television advertising is the next logical step, he said. Paquin noted other ploys, such as free dips in swimming pools for those touring model homes.
...
With a market expected to continue to slump, perhaps for another 18 months to two years, according to Paquin's estimate, builders will likely continue to rely on unique marketing. "Soon you'll be seeing hot air balloons with messages on the side," Paquin said.

9 comments:

Diggin Deeper said...

Balloons, pool parties with hot dogs, beer, and kool aid. Yup, get em in, get em high or drunk, and have em sign. Hey, why not try something novel. Drop your price by a $150K per home and see what happens! You just might get out the project with what's left of the shirt on your back.

Gwynster said...

I just posted under the water cooler but it looks like we're heading to that 150K house at a steady clip. The one new house I'd comsider in Woodland has been reduced 53K since April.

Patient Renter said...

In theory, lower prices will work. (Sell 'em for 100 bucks and people will buy them). In reality though, there aren't enough people who actually want to live in all of these homes. They're simply destined to be rentals, too many were built.

geriatric nightmare said...

I have been waiting for the moment that old G PAQUIN would contradict the statements he made back in December. If you don't recall what he said. Here is the link from landers blog:

http://sacramentolanding.blogspot.com/2006/12/2006-year-of-hangover-2007.html

Suffice to say the whole lot of 'experts' were wrong wrong wrong.

Diggin Deeper said...

Looks like Beazer in South Natomas "Discovery Collection" are starting to crack in price. Their 2 x 2 1/2 1000 sq. ft. BeazerBox with a 1 car garage has dropped to just under $218,000.

You'd have to have enlist the likes of the "Lollipop Kids", Tom Thumb, and Jimminy Cricket in order to live in these cribs.

SacramentoCrash said...

It is like when the little Dutch Boy stuck his finger in a dyke.

The flood is coming... of foreclosures that is.

Diggin Deeper said...

patient renter...

It's win/win for those who choose to remain renters for awhile. Too many rentals will continue to pressure rental rates to the downside as renters get the upper hand due to inventory available.

This will be the summer that never was for real estate. Too much of anything creates fire sales, blue light specials, or deep discounts. Call it what you will, the market will reach a tipping point before it reaches a bottom. Prices will be the only driver that put the keys in the hands of the buyer.

norcaljeff said...

Let the dog and pony show begin, and get ready for the lip stick on this RE pig. It doesn't change the fact that this market has flatlinned. DOA

citykitty said...

Here's a marketing plan:

1. Build houses/condos where people actually want to live.
2. Design the houses/condos to be built at prices that people can actually afford.
3. Open the sales office.

It's radical, but it just might work.