Today hearing about a group of different markets and their conditions is one thing, but the question was “How do you make money during these different markets?”
My answers focused on using the data available to educate the buying and selling public. Too many of them rely on their local newspapers and National studies like the Case-Schiller reports. Unfortunately, these reports are extremely out of date or not “local” enough.
I shared with the audience how we and our industry partners (Title Companies, etc) have educated the public through our websites, advertising and social media that they may actually have equity in their homes, and to contact us to find out. Here are a couple of graphs from the very recent Phoenix market that we have published that have generated significant leads.
Chart 1: With the median price rising now to $155,000, sellers may not realize that they now have equity and can sell their houses not being “underwater.” Showing this to sellers has been a huge lead generator for our agents.
Chart 2 shows that the monthly supply has now dropped to just 2.5 months. This means that prices have started going up and sellers are now jumping back in. Sold Prices have risen to 98.2% of Asking Prices, even with short sales and foreclosures in the mix.
Chart 3 shows that the bottom of the market in Phoenix was in September 2011. Median Prices have risen significantly in the past year – from below $95,000 to $130,000!
Chart 4 is very similar to the above graph. Bottom of the market was September 2011 and median prices have risen from below $290,000 to more than $363,000 in less than a year!
The whole point here is to use the stats available to you to educate your clients; what they read in the paper or hear on the news is probably not reflecting the true market conditions in your local area.