Market Analysis Summary
Due to the strengthening of the area's economy and lower interest rates, more home buyers today are looking to purchase homes. These changes in attitudes of home buyers are a tremendous boost to real estate firms. Residential construction is booming in the city's Old Town section. We are poised to take advantage of these changes, and expect to become a recognized name and profitable entity in the city's real estate market. We chose to locate our office in the area of most revenue potential and where we have close connection to dominant real estate firms. Our targeted market area, the Old Town area, shows stability and growth. We have a beautiful office, centered in the Old Town area.
The first quarter home values were up 12.5 percent from the same period in 2001, the Office of Federal Housing Enterprise Oversight reported. The gain reflects an increase from the previous quarter, when residential real estate values saw growth of 12.1 percent.
4.1 Market Segmentation
The home buyers that Claremont Funding will be serving can be divided into two groups:
- First-time homeowners: A bulk of the new construction in the Old Town section of the city is directed toward first-time homeowners.
- Residential refinancing: Whether it is for purchasing, construction, remodeling, debt consolidation, investment properties or refinancing--we have programs available to service those with good and bad credit.
4.2 Target Market Segment Strategy
We cannot survive waiting for the customer to come to us. Instead, we must get better at focusing on the specific market segments whose needs match our offerings. Focusing on targeted segments is the key to our future. Therefore, we need to focus our marketing message and our services offered. We need to develop our message, communicate it, and make good on it.