After four months of gains, existing-home sales declined in August but remain above levels from a year ago. The drop in the housing economy in the last two years however, has given builders plenty of time to think about things. We’ve seen some big moves (see the Pulte-Centex merger) and creative marketing, much of it focused online.
The U.S. Government has taken a crack at revitalizing the housing market with the federal housing tax credit which seems to have had a positive effect, but with the tax credit opportunity (possibly) coming to an end, what are home builders going to do to sustain recent activity and secure a painless recovery?
Here is a quick look at what the nation’s top builders (according to Builder Magazine 2008 rankings) are offering to entice prospective buyers:
1. D.R. Horton - Capitalizing on the company’s history, the first thing that visitors notice when they visit the Horton Web site is their 30 years of experience. History, coupled with an impressive portfolio of homes, headline this page. With no frills, D.R. Horton spends most of their efforts on helping customer financially fit into their home. They do make it easy to find their homes, and have an abundance of details on each listing.
2. Pulte - During these times where overall confidence in national builders looks to be on the rise, Pulte urges visitors to their site to “Make Your Move” then addresses head on some tricky real estate topics such as purchase of foreclosed homes, renting vs. owning and financial lending. This is another builder that has dedicated space one click from the home page to the history of the company. We’re really intrigued by the unique branding strategy that was developed as a result of the merger.
Bloomberg News
3. Centex - Playing off the current historic low interest rates, Centex is running the “New Address for Less Event” nationally. This promotion combines low interest rates with low prices from Centex for low monthly payments. The Energy Advantage™ is Centex’s answer to energy savings with nine energy-efficient features. They claim their homes are 40% more energy efficient than typical 10-year-old homes.
4. Lennar - Probably the most cutting edge of the top 5 builder’s sites, Lennar has a sharply designed site complete with LennarOnline, their YouTube channel, cruise contest and a rewards program. The Logic of Lennar flash video provides a look at top features you can find within these homes nationwide. Another interesting feature on their site is the Quick Move-IN Homes. A search portal to find homes ready for “immediate enjoyment” or those currently under construction is an interesting new approach to how they describe their inventory. Lennar is also leading the digital homebuilder charge with an established, successful Twitter feed (almost 59,000 followers) and a loyal Facebook following cultivated through creative contests.
5. KB Home - KB Home probably has some of the more flashy promotions and partnerships in place. Things like Martha Stewart communities (because who wouldn’t want to live in a home promoted by Martha?), and the Disney Dream Rooms are available for those kids, both big and small, who want a bedroom that announces a favorite Disney Princess or Cars character. KB Home’s offers energy efficiency options with the “My Home, My Earth” program. All new home communities opened in 2009 and beyond will be built to ENERGY STAR® guidelines.
Will approaches like those listed above be enough to keep America’s largest builders afloat? It’s difficult to say, but increasing visibility online is a great place to begin - that’s where their prospective buyers are. Hopefully homebuyer confidence will continue to increase, mortgage rates will remain low and features like energy efficient appliances are enough to keep customers walking through the door or the prospects for 2010 won’t be getting better anytime soon.
With the weekend approaching we’re ready to kick off our work shoes and hit the ground running; thus, the inspiration for our second #followfriday round-up:
