Every Real Estate Broker (the good ones anyway) can tell you if it’s a buyer’s or seller’s market. But, very few can tell you with any certainty which way the market is heading. This is due to statistical analysis in the rear view mirror. It’s easy to tell what happened last month, but what about next month?
In my 20+ years experience, the best predictor of the FUTURE market conditions lies in a number that very few, if any others, track. It is the number of showings the average listing gets on a monthly basis. I’ve been tracking this for over 10 years, and it is a great predictor of where things are headed.
This is because there is a significant lag time from purchase decision, to closing day. Thus, even the best models are 60-90 days behind the curve. The Showings per Listing stat tells us the current market activity. If activity is high, sales will be high for the next 60-90 days. If activity is low, we know 60-90 days in advance if there is trouble brewing!
Take a look for yourself, and feel free to contact us with any questions!