Strategy: How's my market?

A few days ago, I mentioned that "How's the market?" is the most common question I get regarding real estate. I have a simple format I use to assemble my response based on recent data from the area in question.  Simply complete these statements by inserting the location and choosing the most appropriate word.

Here in (*insert location*), we are currently in a (seller's, buyer's, balanced, normal, mixed) market.

Inventory is (high, normal, low) and sales have been (high, normal, low), so the median price has been (increasing, remaining stable, decreasing).

In a sluggish market, an accurate response may seem discouraging, but you can usually find a silver lining to generate some interest. I like to use an actual market statistic to show that I'm not simply making up my answer.

However, initiated sales increased more than 30% from January to February.

I also like to show that I have some insight into why things are happening.

The number of sales and the median price typically increase from now through the end of May.

Given the negativity surrounding the general market in my area, I've replaced my usual closing question with a new closing statement and question designed to refocus on the positives and continue the conversation.

But that's over the entire county. All real estate is local and some areas and sectors are very hot. Were you interested in a particular city or price range?

Let's fill in the blanks in the first couple of general statements and assemble the rest of my response so that we can see it as a single comment on market conditions.

Here in Santa Clara County, we are currently in a buyer's market. Inventory is high and sales have been low, so the median price has been decreasing. However, initiated sales increased more than 30% from January to February. The number of sales and the median price typically increase from now through the end of May. But that's over the entire county. All real estate is local and some areas and sectors are very hot. Were you interested in a particular city or price range?

That's my answer to "How's your market?" for March. In less than thirty seconds I've provided an accurate overview of current conditions, a hopeful sign, a little analysis, and a couple of questions designed to advance the conversation, if the other person is interested. That last part is the key. Designing your comments to end with a question will prevent you from rambling on and losing the other person's attention.

Sure beats "Lousy!", "Don't ask!", and "Despite what you read in the papers, this is basically a normal market. Newspapers always print bad news because that's what sells..."

So... how's your market? Are you ready to answer the most common real estate question?

Thanks!

Frank Jewett