Mortgage advertising examples are needed to adjust to the changes brought by the COVID-19 pandemic and the subsequent economic disruption. The shift to working from home, demand for housing, short supply, and low mortgage rates have combined to push real estate prices up. While signs of a slowdown are emerging in some markets, the aftermath remains a challenge for mortgage marketing. Digital marketing has become more important than ever for reaching real estate buyers. Learn what the economic impact of the pandemic means with mortgage advertising examples.
How Has the Mortgage Industry Shifted?
Several trends came together to alter the mortgage market landscape during the pandemic. This is according to an analysis of Census Bureau data by real estate website Zillow. Even before the pandemic, demographic trends pointed toward 2020 seeing an increase in home-buying. This is due to the number of millennials reaching their forties, the prime age to purchase a property.
Remote Work Drives Demand
When the pandemic struck, many of these prospective home buyers suddenly found themselves working remotely. May of 2020 saw the number of Americans working from home all or part of the time peak at 69 percent. By September of 2021 this number had only subsided to 45 percent, according to Gallup data, pointing toward a permanent shift.
No longer needing to commute to work, and not swayed by urban amenities that were locked down, many home buyers now sought properties in suburban or rural areas. This helped push up home values in affected areas. The Zillow Home Value Index, a metric measuring typical home values, had risen to 9.1 percent by March 2021, after falling to near 4 percent during the height of the pandemic. At the same time, demand for rentals fell. This reflects the tendency of lower-income renters to move back in with family to weather the pandemic.
Low Supply and Low Interest Lend a Hand
While growing demand for homes was the biggest force driving higher home prices, other factors played a secondary role in pushing prices up. This is according to an analysis by the Federal Reserve. The supply of homes for sale fell to historically low levels, encouraged by mortgage forbearance programs and a foreclosure moratorium. Meanwhile, low interest rates encouraged demand.
Signs of a Slowdown?
While the trend toward higher prices continues in some markets, other parts of the country are already seeing signs of a slowdown, reports Bloomberg. For example, while the housing market in Boise saw 30 percent price increases over the past year, 81 percent of listings showed price cuts in late October. Price slashes of 50 percent or more have been reported in other parts of Idaho, Utah, Colorado, California, Maine, and Washington.
However, the housing boom remains strong in markets such as Phoenix and Austin. Nationally, Zillow reports that home values will rise 13.6 percent over the next year, based on data through October 2021. As this illustrates, the mortgage industry remains subject to regional trends.
Home Shoppers Are Surfing Property Listings
As demand for homes has grown, web traffic to property listing sites has surged. For example, Zillow traffic increased to 9.6 billion visits in 2020, a rise of 1.5 billion from 2019. Also, traffic increased in all of the top 100 metro real estate markets across the country.
Some of this increased traffic reflects the rising demand for homes. However, it also reflects lockdown boredom and curiosity. A survey by rainscreen panel distributor OMNIS found that 83 percent of Zillow visitors have browsed the site to window shop without any intention of buying a home. Also, 45 percent have toured a home in person with no intent to buy. Some window shoppers daydream about luxury homes. But, others are curious to see what their neighbors’ homes look like inside. This presents mortgage markets with the challenge of bypassing window shoppers to reach qualified buyers.
How Should Mortgage Advertising Respond?
What should mortgage marketers do in response to these trends? The new normal calls for several key adjustments.
Digital Marketing Is a Must
With home buyers spending more time surfing listings, digital marketing has become even more critical than it already was. An effective mortgage marketing strategy must make use of digital channels to reach buyers. These include not only sites such as Zillow but also channels such as social media, PPC advertising, and organic search. At the same time, don’t neglect non-digital channels such as direct mail which let you focus on specific markets.
When doing digital marketing, bear in mind the trend toward window shopping, and hone in on qualified buyers. For example, committed buyers tend to have questions about specific real estate topics, such as how to get a mortgage loan. Featuring buying-oriented topics in your blog content, social posts, and ads can help you attract the right audience.
Virtual Tours Attract Virtual Buyers
Homebuyers who are shopping online want to be able to view properties online. Lockdowns sent virtual home tours soaring 750 percent on Zillow. Listings with virtual tours get more clicks than those which use still photos alone.
Moreover, giving buyers a virtual preview of a property can speed up their buying decision and accelerate the closing process. So, leverage virtual tour software, one of many mortgage advertising examples, to encourage buyers and promote closings.
Your CRM Is Key to Capitalizing on Opportunities
Digital technology is also essential for managing the home buying process from the seller’s end. The window to capitalize on selling opportunities closes quickly. The clock starts to tick as soon as a prospect reaches out to express interest in a property. The longer you wait to respond to a lead, the more likely the prospect is to move on to another opportunity before you get back to them.
Avoid costly delays by using a customer relationship management app, like Jungo, that gives your agents real-time alerts on their mobile phones. The right CRM can give you the edge you need to seize emerging moments of opportunity before they’re gone.
Mortgage Advertising Examples to Thrive in the New Normal
The pandemic has shifted the mortgage market. Remote workers are driving demand for homes and lockdowns promoting online home shopping. For mortgage marketers, this means increasing usage of technology tools to reach online buyers. So, including digital marketing channels, virtual tour software, and CRMs with real-time opportunity updates.
Jungo’s all-in-one mortgage CRM app integrates with Salesforce to provide all the tools you need to manage real estate sales pipelines and mortgage documents from anywhere.