I Team Editors Note: This is a great article because Real Estate is taking off right now.. What better way to find what you are looking for than online adds to have access to thousands of properties. Anyone with an interest in Real Estate could benefit from this article.
According to the revised figures, online real estate advertising in 2005 will increase 55% over 2004. Borrell projects that online real estate ads will total $1.8 billion this year, which equates to 15.9% of all real estate ad spending, up more than five percentage points from last year.
The sudden growth indicates that agents, brokers and developers have moved from the experimentation phase and are beginning to commit sizable portions of their marketing budgets to online media," Borrell said. "In short, we believe that they've discovered that interactive advertising works and have begun adjusting the dials on their various marketing expenditures to find the right mix of media."
The changes in the real estate sector are in line with other advertising and media consumption trends showing migration of dollars and consumers to online outlets.
Newspapers, direct mail and local real estate magazines will suffer the most — although currently the extent of their losses are being masked by a healthy real estate market. But Borrell analysts feel that may change soon, for two reasons:
- Home sales tend to run in four-year cycles: Four years of year-over-year growth, and four years of decline. The
- Mortgage rates are increasing: Mortgage rates are influenced by the short-term interest rate, which was at a 46-year low of 1% last June. Since then the Federal Reserve has increased the rate a quarter-point eight consecutive times to the current 3%, and economists expect the Fed to drive the rate as high as 4.25% by the end of this year.
About Fred
Information: Fred leads i Team. With a background in construction and agri-business laid Fred’s business foundation.