New Data!
The MarketGraphics® March 2008 Homes and Subdivision Analysis for the St. Louis Region is published. Hooray!
The winter audit is generally dreaded…short daylight days to drive, dangerous road conditions, car troubles, and a Jimmy-Carter-esque malaise permeating the new homes market. The audit leading up to the MarketGraphics March publication was tough as expected, but the results are worth the effort.
We are thrilled with the new MarketGraphics report, and we feel it has much to offer everyone involved in the new homebuilding and land development business. 1,615 new home subdivisions have been audited, 8,271 homes have been counted as under construction or finished and un-occupied, 3,043 homes are currently available for sale, and MarketGraphics has published 200+ detailed pages about the St. Louis market.
If you study our MarketGraphics information and/or attend our presentations, you are aware of our logic to present supply, demand, and forecast information to discover your best opportunities for success….as well as to reveal risks to avoid.
And now for something different…I want to combine an observation from driving the St. Louis market with data from the MarketGraphics report. I also want to offer two comments and a suggestion.
Observation. While we are hearing home buying traffic is “picking up”, the feeling of sustainable vibrancy is missing from new home communities.
Data. 833 new home displays are open for business in the 10 county St. Louis Region.
Comment #1. New homebuilders have the remarkable privilege to establish a “storefront” via a model home at will within a residential setting. We are not aware of any other type of business that has this opportunity to freely place business locations. However, very few homebuilders merchandise and energize their model homes as is expected in all other retail storefronts. While most retailers make a living converting those “just looking” into buyers, “look-i-loos’ are often the bane of the new home sales professional.
Comment #2. Something bold, different, and meaningful needs to occur to re-awaken potential homebuyers to begin enjoying the experience of visiting display homes.
Suggestion. Magnetize your model homes to become must visit destinations. Think opposite of simple minded big discounts. Instead focus on cooking, entertaining, reading, interior decorating, golfing, kids’ soccer training, or whatever activities connect with the demographics of your potential buyers. Partner with vendors who appreciate your connection with their market and will add to your opportunities. Challenge new home sales professionals to go retail. Make something happen at your model homes; the alternative of letting the market happen to you is unlikely to be successful.
Joe Zanola