During the past 5-6 years there have been tremendous market swings in real estate both locally and nationally, With prices dropping as much as 50% in many markets, buyers and sellers have learned to focus very heavily on prices.  Most buyers and sellers consider themselves to be knowledgeable about real estate market trends because of what the media reports.  Yet, this knowledge is based on general data that may not apply to their price point or neighborhood.

By analyzing key market indicators, you can determine the best time to buy or sell. Keep in mind, your buyers and sellers can’t make the most informed decision unless they  track market activity.  Tracking value should be important to every homeowner because their personal financial security will be impacted by housing values.

Also, keep in mind that a recovery in real estate will lead to an improvement in the economy and possibly even greater  job security for homeowners.  Be sure to share data about the following four-key real estate indicators with buyers, sellers, past clients, advocates, and your sphere of influence.  In other words, everyone you know.

A. Sales Activity (Demand)- Determine how many properties sold last year as compared to the year before. If sales are increasing, prices are likely to increase as well. If sales are declining, prices may continue to decline.

B. Listing Activity (Supply)- If the number of homes for sale in your area is increasing using the same year-over-year comparison as above, prices are likely to drop to absorb the additional inventory. If the inventory is dropping, it may not be long before prices increase.

C. Month’s Supply of homes for sale (Absorption)- The standard is usually around 6 months for average priced homes. This number increases as you move into the higher price ranges. If the supply is over the 6 month’s average, prices may continue to drop.

D. Average Sales Price (Value)– Compare prices last year with a year earlier. If prices have dropped, they may continue to drop in the future. If prices have stabilized or have started to increase, an increase in the future may be at hand.

The following script is ideal to use in every prospecting situation including face-to-face contacts, phone conversations, direct mail, and e-mail contacts. If presented properly, it will be extremely easy to obtain contact information, especially e-mail addresses.

“Are you familiar with what’s happening in real estate in our area now?  I’ve been doing extensive research on recent market activity and comparing my findings to what occurred in prior years to track local real estate trends. I’m updating my information now, and there are some really interesting trends developing.  If you’d like, I’d be happy to share this information with you once I’ve completed my research.  What’s your best e-mail address? Or, if you prefer, I’d be happy to e-mail it to you.”  This script should be used dozens of times a week.   You don’t have to have updates right now. Just promise to get it to them as soon as it’s completed.

 The best time to start this program is NOW!