WRITTEN BY DENISE LONES POSTED ON WEDNESDAY, 17 JUNE 2020 05:00
It doesn’t matter what market I’m in, there are 5 things that are critical to track, and they have to do with things like the pace of the market, what the market is willing to pay, how the market has changed year-over-year, and most importantly what the relationship is between the buyers and sellers in that market.
1. New Listings
The first thing that I always track is inventory. When I want to track listings, I look at the pace that new listings come on the market each week. I will look at week-over-week, month-over-month, and year-over-year. The reason I do all that is because it will reveal trends in the area.
For example, if I go back three years and look at new listings week-over-week, it’s easy to see that inventory has been on a steady decline. Then you have to ask the question, “Why?” In many areas, it’s because of a lack of new construction. But what happens when you have something like Covid-19?
The reason it’s more important than ever to track new listings is because you get to see what is going on with the mindset of sellers. Right now, there are three things going on: One, many sellers are just waiting, wondering what do to, and not taking a lot of action. This means fewer homes coming on the market. Two, we have builders that are not building, further reducing the listings coming onto the market. Three, you have those sellers that were getting ready to sell, convinced they could sell and buy up, but instead they decided to refinance and stay where they are.
The reason why I track new listings and why it’s so important is because it gives you a really good understanding of what can happen in the market. If you have a sudden decline in listings, no matter where your pending numbers are, those pending numbers will be affected by that