Mortgage rates have dropped significantly in the last year, from 8.01% in October 2023 to 6.20% in September 2024. The commercial real estate market isn’t spared either.
In 2024, the market was hit hard by a series of financial shifts, including declines in the U.S. Treasury yields, higher financing costs, and a tightening in credit supply.
As a chain reaction, property prices are tumbling, leading to rising losses on commercial real estate loans. Nearly two-thirds of U.S. banks reported a tightening of lending standards for commercial construction and land development loans, compared to less than 5% just a year ago.
Just because rates are lower doesn’t mean the competition’s any less fierce. Everyone’s trying to get their foot in the door, and you can’t afford to sit back and wait for clients to come to you. The real question is: how do you survive (and even thrive) when things get tough?
Answer: Adapt to this restrictive market with data-driven digital marketing. Let’s get into how you can use data to keep things moving forward, no matter what the market throws your way.
Stay Consistent With Email Marketing
You cannot underestimate the power of emails in marketing. Around 4.37 billion people open their emails every day. That’s quite a number, isn’t it? The ROI per dollar spent on email marketing has been historically higher than all other forms of marketing.
According to a recent survey, 52% of participating marketing professionals reported a 2x improvement rate in their email marketing campaigns’ ROI.
How to Optimize Your Real Estate Email Marketing for Higher ROI
All email campaigns start with segmentation. Use data to create detailed customer profiles and segment your email list more precisely. Then, personalize your emails based on past behavior, preferences, and interactions to keep your clients engaged, even when they aren’t actively looking for a new property.
For example, if a client has previously shown interest in rental properties, send them targeted updates about market trends or investment opportunities for rental properties instead of generic listings.
Even mortgage lenders can use similar tactics to boost client engagement and generate leads. For instance, if a client has previously applied for a mortgage, send them updates on interest rates, refinancing options, or market changes that could impact their decision-making.
In the next step, track key metrics like loan application rates, pre-qualification responses, and conversion rates from inquiry to closed deals to see what resonates with your clients—and what doesn’t. Use A/B testing to refine your approach, with a sharp focus on strategies that generate more leads.
During an economic downturn, you will inevitably notice the market slowing down. But this doesn’t mean all your leads are gone for good. Use data to locate your dormant or disengaged leads and re-engage them with automated mortgage email sequences.
If you want to skip the manual grunt work, consider using a mortgage email marketing CRM to automate the entire process for you.
Choose a platform that lets you automatically nurture and re-engage dormant leads with personalized email sequences, keeping your prospects warm even during the slump.
A platform like Jungo goes the extra mile by offering pre-written mortgage email templates and social media content that are refreshed weekly. Their Email of the Week focuses on different themes, including client outreach, industry insights, credit, home buying, and even seasonal topics.
This gives you a quick and easy way to keep your communications fresh and relevant.
Use Predictive Analytics to Identify Emerging Market Trends
Today, nearly 91% of marketing professionals use predictive analytics to narrow down their focus and uncover meaningful insights. But what is predictive analytics, and how can it help you keep your real estate business afloat during the recession?
Well, predictive AI looks at patterns in historical data and uses machine learning algorithms to predict future shifts.
For example, it can show you which neighborhoods are about to become hot or which property types will start trending. This gives you a clear roadmap for targeting the right clients at the right time with the right messaging.
Let’s say you notice a pattern where young professionals are moving to a specific area. Predictive analytics helps you focus your marketing efforts on that neighborhood and fine-tune your outreach to these buyers.
There’s no guesswork here. You are using solid data to guide your strategy, helping you stay ahead of the market.
Analyze Market Trends in Real-Time
The real estate market doesn’t wait for anyone—especially when things are uncertain. Prices change, interest rates fluctuate, and buyer sentiment can shift unexpectedly- all within a span of just a couple of days.
If you’re not staying on top of these changes in real-time, you risk falling behind. With real-time market analysis, you can fine-tune your marketing tactics on the fly, making sure you stay relevant and competitive, irrespective of the market conditions.
With the right tools, you can track key metrics like property prices, interest rates, and consumer sentiment as they happen. For example, if mortgage rates drop, you can quickly highlight this opportunity in your marketing to attract more buyers.
If a certain area sees a price spike, you can focus your efforts there. The key is staying agile, i.e., by continuously adapting your strategy based on live data, you’re always in the right place at the right time.
To stay ahead:
- Use tools that track real-time property price changes and interest rates.
- Monitor consumer sentiment through social media or client surveys.
- Adjust your messaging to address immediate concerns, like affordability or market stability.
- Highlight emerging opportunities as soon as you spot trends.
- Keep your strategy flexible—small shifts can make a big difference.
Keep Moving Forward
In an unpredictable market, data is your strongest ally. By using real-time insights and predictive analytics, you can adapt with confidence and seize opportunities before they peak. Data-driven marketing empowers you to make smarter decisions, both in terms of engaging the right clients and refining your strategy.
Stay ahead, not by reacting to change, but by anticipating it!