Combat Slowing Sales in Your Life Plan Community
Author: John Harned
How are you monitoring market conditions and indicators that can forecast your community’s ability to sell vacant apartments and cottages?
Developing relationships with local Realtor groups can give you access to data on the average days on market for houses within a 20-mile radius of your community. This monthly data can help you predict unit sales changes in future months.
By monitoring a rolling 12- to 24-month trend for average days on market, you may be able to leverage trend analysis to make informed decisions at a faster pace, creating a competitive edge. We can expect average days on market to increase in our rising interest rate environment. To leverage this competitive edge, you’ll need to proactively create your response strategy.
Like most strategies, timing is everything. Deploying your strategies too early can create opportunity risk because you’ve lost the value when you needed it the most—thus, the importance of monitoring market trends.
The first wave of your strategy may include helping prospective residents downsize and declutter, stage houses, fix cosmetic finishes that add value, etc.
The second wave of your strategy may include increasing your organization’s presence in home and community-based services (HCBS) to help those unable to move into your community for various reasons.
Monitoring these trends and having proactive strategies ready to launch can help your community reduce sales fluctuations and increase your competitive positioning.
If you’re considering HCBS or already have a robust HCBS program, contact your trusted BKD advisor.