REALTOR® Magazine Online: 6 Economic Factors to Consider

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			Marketing your brokerage Analyzing the Business Climate
	Setting Marketing Strategies Analyzing the Business Climate Creating Your Market Identity Planning Your Advertising Coordinating Company and Salesperson Marketing Developing Public Relations Strategies Enhancing Customer Service		Although people need to buy and sell homes in any economic climate, assessing the current and projected strength of your local economy will help you determine if it’s a good time to open or expand your business. 6 Economic Factors to Consider Economic projections for national economy over the next three to five years. Sources: U.S. Bureau of Labor Statistics, U.S. Department of Commerce, U.S. Bureau of Economic Analysis Economic projections for your region and city. Sources: State and city Chambers of Commerce Recent or projected expansion or contraction of major employers in the area. Sources: Local newspapers and business journals, personal contacts TIP: If your area relies on only one or two major employers—such as a local manufacturer—you may also want to research the financial health of that particular company and of its particular industry. Savings rate and rate of debt defaults in your area. Sources: Local bankers, the local chapter of the American Bankers Association. Current unemployment rates in your area and trends in jobless claims. Source: Local unemployment compensation agency Current trends in housing prices and number of days on the market. Sources: Your local board of REALTORS®, the experience of you and your colleagues. TIP: Before you begin analyzing your market, carefully define it in terms of size and exact physical boundaries. 10 Demographics Questions to Consider The U.S. Census Bureau is an excellent, one-stop source for most of the demographic data you’ll need for your analysis: 1. What are the total number of households in your current or projected market area? 2. What percentage of that total number own homes? 3. What is the composition and size of the households in your market? 4. What size is the population that will become adults—and thus potential homebuyers—in the next decade? TIP: Consider not only today’s homeowners, but how many people in your area will be in their late 20s and early 30s in the years ahead. This is often the age when people buy their first homes. 5. What is the population growth in your area? How does the rate of growth compare to the national average? 6. What is the population mobility of your market? How many people are moving in or out of the area? 7. What are the income levels of the area? Are they increasing or stagnated? 8.What is the rate of new home starts in your area? Are starts increasing at the national average? 9. What is the vacancy rate for rental apartments in the area? 10. How do rental prices in your area compare to the typical mortgage payment for a starter home? 3 Skills to Rate Your Company On >

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