What are your area statistics? Listings and agent count!

By
Real Estate Agent with Crye-Leike REALTORS® 165062

Over the years, a lot of agents come to me and ask about how to improve their business.  The first question I ask them if it is a buyers market or a sellers market.  What is the absorption rate for their particular area for class of listed property...how many active listings are on the market...is that higher or lower than preceding years...what is the number of agents in the MLS... and it that number up or down for previous roster lists?  They invariabley look at me like I have two heads!

My focus is that to keep ahead of the competition, I feel it is necessary to have real market knowledge.  Not guess work, not pull numbers out of the air, not make anything up...just the facts.  I carry them with me on the listing appointments.  Why?  Sellers love them!  First of all, no other agent is doing them or interpreting the numbers.  It allows the seller to more carefully choose who will represent them, and what your worth is!  That translates wil they pay you nothing...or a full commission plus!

In our market we used to have about 45-52000 listings during the winter months...in the last few years it has peaked.  As of today in one listig service I noticed there are Active - 65691 Properties Found.  Another service 90965.  A few years ago we had about 13,000 active agents today we have about 42723.  The problem is that sales have not increased exponentially.  And as a matter of fact they are dropping over the last few years.  Foreclosures are up, and no one talks about the sales numbers.  The deals per agent have declined big time.  The number of expired listings equal annually the number of homes sold. the monthly forclosure inventory can equal the number of homes sold in a month. 

To compete in a market with numbers like these and be successful you have to know what is a good listing and should I list it or walk away, choosing not to work with a waste of time buyer or investor that will not sign agency, and where to spend marketing dollars most effectivley!  If you know the facts it is easy to answer, and act accordingly!  None of this is guesswork.  Do you know the stats in your market?  If so share them!

 

Posted by

James Crawford ABR, Broker Associate

 

 

 

 

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homes for sale
market stats
days on market
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absorption times
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Ambassador
1,485,851
Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR
Well in every market ther are numbers.  An old saying is that figures lie, and liars figure.  I feel the truth is always the best medicine.
Feb 01, 2007 02:48 PM #4
Rainmaker
1,765,876
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate
We have just over 20,000 active listings (SFR, condo and townhouse) in the Las Vegas valley (LV, Henderson, North Las Vegas), which gives us a 9-10 month supply. That's after 607 listings expired at the end of January. The total is down about 10% from a couple of months ago. I think we peaked at 22-23,000. We have 17,697 agents.
Feb 01, 2007 03:34 PM #5
Ambassador
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Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR
Thanks John.  I think most markets have peaked. The numbers of agents is not climbing as it once was!  Listing inventory has held at this number more or less for a while.  We had a modest drop off during the holidays.  The only think we'll have to watch is the spring inventory.  If a lot of people took the home off the market in the belief the peak season will be their opportunity we may be in for a "Dead cat bounce!"
Feb 01, 2007 03:46 PM #6
Rainmaker
613,042
Sharon Simms
Coastal Properties Group International - Christie's International - Saint Petersburg, FL
St. Petersburg FL - CRS CIPS CLHMS RSPS
Sellers want to know facts, not generalizations. I, too, use statistics, carry them with me, know the basics. They want to know why we say what we say, and that we DO know the market. You're absolutely right, Jim.
Feb 02, 2007 11:13 AM #7
Ambassador
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Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR
Thanks.  It really is all in the numbers.  I also feel that in knowing and understanding the numbers we become better at what we do.  We become authorities in our line of work.  Knowinghte numbers has lead to many radio, news, and media interviews.  They bring even more respect.
Feb 02, 2007 11:30 AM #8
Rainer
100,192
Kaushik Sirkar
Call Realty, Inc. - Chandler, AZ
Very well said.  A true professional has to know all the relevant statistics in their market!
Feb 02, 2007 05:01 PM #9
Rainer
5,200
Michelle Hansen Nuzzelillo, Broker/Owner
The Red House Realty Group - Tamworth, NH

I'm a 'numbers girl' and I always crunch the numbers... I find that some clients are very interested in hearing them, and some just get that glazed, far off look in their eyes when I start spouting off numbers.

In my county (we're very rural) our numbers are as follows:
2005: 1,420 Sales, 105 DOM
2006: 1,166 Sales, 133 DOM

The sales price is down only a few percentage points.  Sellers are not coming down in price, but the buyers are not stepping up!

Today, we have 13.5 - yes, thirteen and a half - months of listings on the market... ugh!!!

Feb 02, 2007 10:40 PM #10
Ambassador
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Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR
Thanks for this info Jim. You are awesome. I am going to doa s you suggested and bring the stats with me on my listing appointments....Especially my "Expireds."
Feb 02, 2007 11:57 PM #11
Ambassador
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Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

Sellers do like stats.  The important thing is to have real numbers.  I love to spout them off, and then show them on paper.  They normally look at one another as to say wow!

Back in the early 90's when Ellen and I moved to Atlanta, and did not know a soul here we started working the expireds.  We specialized in them and did very well.  We listed and sold over 37.  We got to be so successful with selling homes that did not sell that even our competition would call us and give us a referral.  I was just part of the routine that agents with Northside realty, Harry Norman, and other REMAX agents that had homes sitting on the market forever would call us.  And we got the job done!  It is all paying attention to the details,   The only thing you cannot change in an expired home is the location!  Everything else can be compensated for.   Price was the last thing we ever changed.  In fact we almost never adjusted price.  All of the expireds we sold, were sold at the same price as the listing agents before.  The secret is in all the details.

Feb 03, 2007 12:19 AM #12
Rainer
151,716
Cynthia Sloop
Community Association Manager - Indianapolis, IN
Thanks for sharing the statistics and how you have used them to know and grow your business.  I came new to Indianapolis last year.  I have been working hard to make a name for myself in this tough market.  I too chase expireds.  I have had luck in selling the once expired listings thus far.  Just wish people would give me a chance sooner than they do.  I seem to get the listing at the last miunite when they are desperate and not sure how they'll make payments, etc., etc.  Thanks again, you are a true professional!
Feb 03, 2007 01:18 AM #13
Rainmaker
3,052,041
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ
Jim - You are right on point here - it is critical to know the numbers - and to as detailed level as possible.  Communities within the same city can have drastically different absorption rates.
Feb 03, 2007 01:45 AM #14
Anonymous
Gene Ward

I agree, providing stats to sellers and buyers is vital. I feel it's important that clients be given the information they need to make informed decisions. I provide charts that show the average selling price for single family homes and the average contract interest rate per year, from 1983 through 2006. In addition I like to provide to sellers the "months of inventory" for the last 30 days (pending sales last 30 days), so we can discuss how long it has been taking to sell a home . Months of inventory varies depending on the time of year and market conditions. This information really helps when setting the listing price. To see an example of how I chart & graph the "Average Selling Price of Detached SFH" and interest rates on my blog.

 

Feb 03, 2007 03:42 AM #15
Ambassador
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Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR
Again, lots of great input here!  One item I noted is very true.  Stats are not all doom and gloom.  We can have segments of the market very soft, and other niches, price points, school district or fantastic locations that are doing incredible.   So statistics need to be generalized to the area the property is located, but then brought down to a comparitive level that makes sense.  Apples to apples is a smart way to work their property into the equation, and then the big picture.
Feb 03, 2007 05:46 AM #16
Rainer
1,569
Asdf Jkll
Asdf - Bothell, WA
Fantastic suggestion about taking local market stats on listing appointments. Creating relationships is about fostering trust - if I can make intelligent assertions about the market's "weather" and back these assertions up with fact, I stand a good chance of securing this trust, as well as managing my client's expectations throughout the entire selling process.
Feb 03, 2007 06:43 AM #17
Rainer
23,647
joanne Douglas
Terrie O'Connor Realtors - Ridgewood, NJ
You are right!  I publish the market stats for a very small market area (Ridgewood NJ & Bergen County NJ) every month right here on active rain.  If I have taken my vitamin E, I will actually remember those numbers!  
Feb 03, 2007 07:52 AM #18
Ambassador
1,485,851
Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR
Local market stats are strong stuff.  Most of your competition will not use or try to make sense of them.  I am surprised sometimes by seasoned agents when I mention market stats thay have no idea that if they do not exist youcan ceate tehm so the big picture starts to make sense.  If I know that inventory is off the charts, LP/SP ratio is slipping, expired are up, and sales re off by 16.8%... I know whey the phones are not ringing.  There is no guesswork involved here.  To most agents, it is guesswork!
Feb 03, 2007 10:40 AM #19
Rainer
122,167
Christy Powers
Keller Williams Coastal Area Partners - Pooler, GA
Pooler, Savannah Real Estate Agent
This is a great question. I think there are more agents than people sometimes.....It's sad.
Feb 03, 2007 03:23 PM #20
Ambassador
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Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR
In Atlanta it is sad but true.
Feb 03, 2007 03:46 PM #21
Rainer
271,163
David Abernathy
Waterfront Properties & Club Communities - Jupiter, FL
Palm Beach County Real Estate

Amen to your analysis -

We have continued to have our inventory climb - This morning we have 60,166 listings in our MLS.

We actually track by our MLS areas to be able to share inventory turns in each area and the solds vs expireds.

Clients love to hear what is going on in the market.

Feb 04, 2007 04:37 AM #22
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Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

What is the old saying..."Forewarned is forearmed!"  If you know what you are up against, and can relay that to your clients so tthat you are all reading on the same page, and form a strategy...then you at least have a fighting chance!  We took 4 listings this week, and I beleive we priced tehm all right where they should be.  Even though it is Super Bowl Sunday, one home is schedualed to have 15 shows today. 

Sellers have to be reading on the same page.

Feb 04, 2007 06:01 AM #23
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