Existing Home Sales Decline By 34% December 2022

· Home sales declined 1.5% on a month-over-month basis in December 2023.

· Existing home sales were down 34% year over year, marking the eleventh straight month of declines.

· The median sales price rose 2.3% to $366,900 on a year-over-year basis.

The National Association of Realtors recently shared a significant home sales decline in December 2022, by 34% year over year and a decline of 1.5% month over month. – the 11th consecutive month of declines. This reflects a downward trend in home sales that have taken place for almost a year, suggesting an unfavorable housing market climate. Moreover, such a downward trend has the potential to decrease the value of real estate prices. It is important to pay attention to home sale trends to make well-informed decisions when it comes to buying or selling a house.

Why Are Homes Sales Falling So Fast?
The mortgage rate increases of 2022 were unprecedented, with rates having doubled over the course of the calendar year. This all-time high increase in mortgage rates is the number one cause of the decline in home sales that we have seen across the country. High mortgage rates inflate mortgage payments and can put a strain on potential buyers’ pockets. In January of 2022 mortgage rates were reported to hover around 3%, but by December they had risen to an alarming 6.5%. This drastic in mortgage rates is faster than ever before, leading to a decrease in people being able to afford their dream homes.

Why Are Interest Rates Rising So Fast?
The federal funds rate is an instrumental tool in the Federal Reserve’s attempt to combat the inflationary pressures on the US economy, specifically now when inflation rates are at their highest in 40 years. In 2022 alone, the Federal Reserve hiked up the federal funds rate seven times, starting at a low of .25% and closing out the year with a federal funds rate of 4.5%. This is a major shift and leads to a higher cost of borrowing money for houses, cars, and everything we buy, putting a damper on consumer spending. But how high does the federal reserve rate need to go to gain control over inflation? While experts may have predictions, it’s ultimately impossible to know for sure.

In recent years, the Federal government has overseen the unprecedented growth of the M1 and M2 money supplies by increasing the number of dollars available. Looking at graphs of M1 and M2 money supplies reveals a sharp acceleration in growth in both funds. With more dollars chasing goods and services, prices naturally will rise as suppliers leverage higher demand to increase costs. This concept is simple and also known as ‘supply & demand 101′.

Will There Be a Housing Crash in 2023?
We do not believe there will be a crash in home prices in 2023, however, we do believe home prices will decline in 2023 says John Myers owner/broker of Myers & Myers Real Estate.

Housing prices are beginning to fall in many of the large cities across the United States. While there is a range of predictions from experts about what will happen next. One thing is for certain: the housing market centers around local markets and no two housing markets are the same. As a result, buyers and sellers should track local housing prices and keep an eye on the economy as time progresses to gauge how they might affect their housing plans. Although it is fully possible that housing prices could crash in some areas, others may follow different trends altogether – so tune into your local housing market to stay informed.

What Should Home Buyers Do?
As home buyers weigh the decision to purchase, they need to consider all the factors that go into home buying, especially the current and expected mortgage rates. Most experts predict the Federal Reserve will increase its fed funds rate over the 2023 year, which should result in a rise in mortgage rates. However, some experts are proposing different opinions; they feel that mortgage rates could reduce by the end of 2023. Despite these contrasting predictions, I fall in the camp that mortgage rates will be higher after this year than when we started it. Buyers will have much to ponder as home prices possibly decline due to pandemic-driven economic challenges and increased competition for homes with low borrowing costs. Each home buyer should monitor their local real estate market and reflect on their goals carefully before making a home-buying decision so they can be sure their purchase aligns with what is best for them.

What Should Home Sellers Do?
Home sellers fall into two categories – homeowners that must sell and those who want to sell. For home sellers that must sell, we highly recommend selling sooner rather than later given the fact that rising mortgage rates are making it harder for buyers to afford a home and home prices are currently falling in major cities; although we do not expect an outright crash. Homeowners who want to sell should know that markets have changed and offers will likely not come flooding in as quickly as they may hope. They should adjust their expectations accordingly and understand that patience is required when marketing themselves properly in these unique markets.

In Conclusion
After a few years of an ultra-competitive housing market, the market is shifting and a more balanced market is emerging. Buyers, sellers, real estate agents, real estate investors, and other professionals within the real estate industry are adapting to this change which results from pandemic-related circumstances being largely over, essentially returning the real estate market to pre-pandemic norms. Buyers will note that properties are staying on the market longer as competition eases up somewhat, though it is still an active housing market. It will be interesting to monitor how this shift continues in the coming months and years.

Product Marketing for the 21st Century

Marketing by definition is all about reaching out to the consumers through targeted messages and by positioning the product based on the pricing, promotion, distribution elements of the marketing mix. Further, the marketers must be able to glocalize or adapt the global brands to local conditions to leverage upon the market power of the specific regions and countries. Further, marketers have obligations towards the consumers and hence must follow ethical norms. Finally, marketers must also be in compliance with the legal and regulatory rules and procedures in vogue in the specific markets that they operate.PricingPricing affects the marketing of a product as it determines the consumer segment that is likely to buy the product. For instance, it is common for marketers to segment the market according to the price range that they are selling the product in. There can be lower priced models for the lower end of the segment, medium priced models and finally, the premium or the upper end models for the upper crust of the market. Pricing is important because it determines the discovered value of the product and can be either undervalued or overvalued leading to the product getting sold in abundance or otherwise. Finally, pricing affects the bottom line of the company since it is the direct determinant of revenues. It is for these reasons that pricing is an important variable in the marketing mix (Blois, 2007, 42).PromotionThe way in which the product is promoted determines the extent to which the marketing campaign is successful in its scope and reach. For instance, targeted promotion at specific consumer segments means that the message that is intended to be sent because of the promotional campaign would be heard in the correct context or not. Successful advertising also impacts the bottom lines of companies since they determine the sales of the product. Finally, promotion is important because without advertising or word of mouth publicity coupled with point of sale promotions, it is difficult for marketers to get their message across and make sure that consumers absorb the message that is being conveyed. It is for these reasons that promotion is considered an important variable in the marketing mix (Egan & Johnson, 2008, 17).DistributionThis variable is usually not given the importance that it ought to be accorded by marketers. The point about distribution being important is that availability and accessibility of the product determine to a great extent how successful it would be in the real world market. For instance, when the latest version of the Apple iPhone 4S debuted recently, the outlets were not stocked with enough products leading to wait times by the consumers making them switch over to substitutes or alternatives. It is for this reason that many marketers design the distribution channels first and then plan their marketing strategies so as to leverage upon the synergies that would accrue from the combination of distribution channels and advertising. Further, many marketers test the products’ applicability and desirability in the market by rolling out test launches in select regions which would ensure that the products and their relevance to the market can be gauged by measuring the response (Kotler & Armstrong, 2010, 80).Marketing in International MarketsAmong the pricing, promotion and distribution elements to be considered for international markets, the following specific elements must be taken into consideration: The pricing must be done based on the local purchasing power determined according to the PPP or Purchasing Power Parity. Next, the promotion must be done in such a way that it is a combination of global brand appeal tailored to local conditions or “Glocal” in approach. Finally, the distribution must take into account the varying needs of the global supply chain and its success would depend on how well the company taps into the specifics of the local market. The point here is that when marketing to international markets, attention must be paid to the fact that there is a need to understand the local conditions and hence blind application of global strategies must be avoided. This means that a “Glocal” approach where the global strategies are adapted to local conditions must be followed so that the product is successful in the local markets.Ethical ConsiderationsThe primary ethical consideration that marketers ought to consider is whether the product being marketed or advertised is according to the normative rules of conduct like not targeting inappropriate advertising at children or using props or visuals that might be offensive to certain groups. The point here is that marketing by definition is all about winning the hearts and minds of consumers and to achieve this, the ethical norms must not be sacrificed. Given the fact that many marketers use messages that use stereotypes, they must be considerate towards minorities, disadvantaged sections and other groups when designing their marketing strategies (Constantinides, 2006, 418).Effect of Legal and Regulatory RequirementsThe legal or regulatory requirements that affect the marketing function include compliance with local labor laws and policies dealing with specific conditions under which the marketers operate in a given market. The fact that each country and region has separate laws for marketers to obey means that they should not only be cognizant of these laws and regulations but also be in compliance with them. It needs to be remembered that punitive action by the regulators impacts the product’s brand value apart from entailing costs that might have to be borne by the companies in marketing the product (Hassan & Submission, 2003, 140).ReferencesBlois, K. (2007). `Business Customers’ Behavior – A Challenge for the Relationship Marketing Concept?’ Journal of Business Market Management 1(1):41-58.Egan & John (2008). `A century of marketing’. The Marketing Review 8(1):3-23.Kotler, P. & Armstrong, G. (2010). Principles of Marketing (12th Edition) (Principles of Marketing). Prentice Hall.Hassan, S. S. & Submission, H. C. (2003). `Global marketing eviews’. Journal of Global Marketing 6(3):139-142.Constantinides, E. (2006). `The Marketing Mix Revisited: Towards the 21st Century Marketing’. Journal of Marketing Management 22(3):407-438.

Productive Product Launching – 3 Keys to Product Launching

So you have a new product or have purchased an old one and are taking over manufacturing or services. Congratulations! Or should one say, “Your work is just beginning?” Perhaps so. Now you need to launch and promote your product.

1. Plan ahead. Make sure you have enough time to hype your product. Take the entertainment industry as an example. Many movies are hyped before they’re even finished. By the time they come out just their release is enough to launch them into space. Use your time to plan your campaign and begin introducing some curiosity on forums and blogs.

Make sure if you are going to have printed materials that those are ready to go weeks before the launch date, and don’t put launch information on them–leave them general. Part of the reason you want to leave so much time is that, like your product, printing products and graphic design sometimes take longer than people expect.

2. Make sure you have a plan B. Just in case things aren’t perfectly smooth and on time, make sure you have a backup plan. Even if it means having a set of articles and press releases done ahead of time, it’s worth it.

3. Cover different media when you announce your product. Send your press releases to all kinds of media, including the internet. There are many internet press release services that will distribute your information all over the web for a reasonable price. Just make sure they are high quality and reliable.