Marketing matters. The housing industry can be a rollercoaster, and we’re here to prepare you for the good, the bad and everything in between. This ongoing series aims to help builders learn the answer to a frequently-asked question: why does marketing matter? 

This past month, many of our clients (and other homebuilders across the country) noticed a drop in their metrics. Whether it was significant or insignificant, we understand that this can usually cause a bit of panic or confusion—and possibly question your marketing strategy. Before you make any changes to your efforts or strategy, read on to see our take on the change in metrics and what you can expect in the near future. 

What we expected to see

Going into the second quarter of 2021, especially after a strong Q1 across the board, we expected to see different numbers than what we’re seeing right now. New seasons always bring changes to the new-construction real estate market, so we are always prepared for some variation in data. Numbers this time of year are historically higher, and we don’t typically witness our builders experience major decreases in volume or engagement metrics. 

What we saw instead

However, as you already know, numbers were a little—or a lot—lower than we expected. There were significant decreases across the board, for builders of all sizes and in every part of the country. For example, search engine traffic has fallen anywhere between five percent and 20 percent in the last two months. 

Why we think it’s happening

There’s a few reasons why builders are seeing a dip in their numbers. For the past year, all anyone’s been talking about is how hot the real estate market is—as more people than ever were looking to purchase a home. This increase in demand created fierce competition between the resale and new-construction market, and even further competition between the new-construction builders in the same markets. 

U.S. Census Bureau and U.S. Department of Housing and Urban Development, Average Sales Price of Houses Sold for the United States [ASPUS], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/ASPUS, May 13, 2021

Prices of homes continue to rise, well beyond what the market value would have been just two years ago. Homes are expensive and inventory is scarce, which is the main reason why you’re seeing traffic to your site drop. Many buyers who were once interested in and fully committed to buying a home have given up on their search—and because so many people outside of the homebuilding (or homebuying) space are so aware of the insane market conditions, consumers at the beginning of the buyer journey (120 days out) aren’t even attempting to browse for homes. 

What you can do with that information

Here at Builder Designs, we like to say we use data as our compass. Abnormal trends shouldn’t force an immediate shift in your marketing strategy, but it should make you ask questions and take factors outside of your control into consideration when planning your next steps. 

Take a good look at your numbers, and separate your volume metrics from engagement. If your volume is going down, but engagement (bounce rates, average pages per session, average session duration,conversion) is similar to what you’ve had in the past, you don’t have anything to worry about. Although you have less users on your website, those users are still staying active, navigating through pages, contacting your online sales consultant and maybe checking out a few blogs or photo galleries. 

However, if you notice a significant decrease in both volume and engagement, it might be time to switch up your messaging and strategy. Although numbers have been abnormal this past month for almost every builder, we understand that this situation can put pressure on you and your brand. If you’re an existing marketing client, reach out to your account manager to walk you through any changes that can be made. If you’re looking for a new marketing partner to help boost your numbers and guide your strategy, contact Amber at (913) 393-3367 or email amber@builderdesigns.com.