Management Consulting Analysis and Applications of Adaptive Marketing and Organizational Strategy During COVID-19

Introduction

As a result of COVID-19, leaders' need to be adaptable and innovative with their approaches has never been more significant. With home prices continuing to reach new highs and the market showing few signs of slowing in most of the country's metropolitan areas, questions surrounding rising housing market risks remain (CoreLogic, 2022). In 2021, home price growth soared to a 15% annual increase from 2020 (CoreLogic, 2022). However, home price gains are expected to slow due to heavy inflation and higher interest rates. The 10% growth for the year and the recent rapid price acceleration have led to overvaluations in some markets (CoreLogic, 2022). Some experts failed to consider that although housing prices are increasing, consumer income has not, especially with floating increased oil prices and higher costs for food consumption. Researchers posit that the market is headed for hyperinflation. As prices increase, supply demands decrease. This paradigm shift demonstrates the cause of higher interest rates when supply is low, and demand is high. Currently, logistics and supply chain challenges are still crucial, as 40% of products are left at the Port of Los Angeles (Bloomberg, 2021). Shipping containers full of products awaiting movement to their destination (Bloomberg, 2021). The push and pull strategy formation of mitigating risks requires horizontal integration techniques to sustain marketability.

Furthermore, prices in some metro areas with price increases will continue to rise as consumers will not be able to afford high-interest rates, living expenses, and food shortages. Although home prices grew steadily – an average of 4% of U.S. metro areas saw price declines (CoreLogic, 2022). Recently, when the pandemic began in FY2020, some 15% of the U.S. urban areas saw price declines that eventually dropped near zero during FY2021 (CoreLogic, 2022). Table 1 shows metro areas that are the most overvalued based on demographics.