Below are the updated graphs highlighting our recent market conditions. This is the third monthly update with charts and analysis. If you would like a copy of past updates, please e-mail me and I’ll send them to you for your reference. I hope you find the charts and my commentary that follows helpful to your understanding of the market. With this information and your own understanding of your client’s needs, you should be able to counsel your clients for their best chance of success!
It is interesting to view the current and historical data in these charts to get a snapshot of recent history compared to years past. What is particularly interesting about this month’s data is its similarity to years past. Notice the divergence of the yellow “Sold Properties” line and the pink “Pending Settlements” line. These lines have diverged every year since June 2001. So, at least for this trend, it’s business as usual. Of course this year the lines have not moved very far apart indicating a slower pace of sales. If you look at where these lines are, it’s more indicative of what our market usually looks like over the Holidays from Thanksgiving to New Years when most of us have been in blissful hibernation and holiday mode. This is the time of year when successful agents re-trench, re-tool and lay the ground-work for a busy spring. If you think the market is slow now…..what do you think it will be like in December?
Make your moves now or have hibernation forced on you.
Keep an eye on the blue “Active Listings” line. It’s in record territory showing some upward velocity. Get your sellers to sell NOW. That blue line has to come down….soon!
What’s this….some good news? Average Sold Price on the way up and Average Days On Market on the way down! The pink Days On Market line always hits its low around July but this is a steeper than normal decline showing good downward velocity. Hopefully, we will see this trend continue before the inevitable march upward begins. This data along with the blue Active Listings line from the first chart could be pointing toward a leveling off of the housing downturn. My opinion is that it indicates that people are coming to grips with the realities of this market and adapting. Agents have gotten much better at knowing and communicating to sellers what they need to do to sell their property. Sellers are finally making the concessions necessary to make the deals happen. Agents and sellers are also being more successful in navigating the short sale process taking even more inventory off the market. The short term trend seems to be a leveling-off of the beating we have been taking but not an outright recovery. We must continue to improve our business practices.
The true recovery will take time. Many in our area seem to be holding their breath for BRAC. Meanwhile, offices are closing, staff is being laid off and agents that have done well over the last few years are being confronted with the realization that their business plans, if they have a plan, do not hold up under the stress of a tough market. There has to be a plan that will excel in tough markets as well as take full advantage of “good” markets. We will continue to experience both in the future.
So, where should agents turn to stay healthy and productive no matter what the market brings? Change is the only thing in our business that is guaranteed. That’s what makes many of us thrive. It’s also what makes many of us duck our heads and hide. We can only grow through change and change is uncomfortable.
When it is time for you to do something meaningful to improve your career, please take time to consider what New Millennium could do for you. Our business model from the ground up is based on supporting and generating business and income for you. I would welcome meeting you in person. It’s fun, it’s casual and it could be just what the doctor ordered! Call or e-mail me anytime!
Kirk Groves
website: kirkgroves.c21nm.com
e-mail: kirk.groves@c21nm.com
410-340-8975 cell
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