R.E.A.P. Club

Real estate is influenced by supply and demand influenced; the number of listings (amount of inventory) is the supply segment of the equation. Agents need to understand the current and emerging market trends of our region and how that will influence the market place in the future.

The skill to evaluate the present against the past in order to forecast the future will allow you to see where you have been and where the marketplace is trending and  can separate Real Estate Agent Professionals (REAP) from others in the marketplace.

Evaluate the total sales volume and number of sales against the previous year on a year-to-date basis.

Is the number of homes (units) sold going up or down?
Is the total volume increasing or decreasing?
Is the number of homes for sale up or down?
Is the number of homes for sale rising or falling compared to this time last year?
Is the mix of inventory for sale the same - in houses, town houses, flats?
Is there more inventory in certain geographic areas than this time last year?

If you track the inventory of homes for sale and sold homes, you will have a great wealth of information.

As the inventory of active listings increased over the year, most people paniced as it signaled a change in the marketplace. The media picked up on the increase and started portraying the change as doom and gloom, and 'bubble bursting'. This causes the consumers, and even Agents, reacting negatively against the real estate marketplace.

Certainly, the increase in inventory would influence the marketplace ... the marketplace would eventually have price and value corrections. Having all the information on hand and knowing the trend of a market place allows for the factual presentation of the market place trends aganst the (generally) unqualified presentation of the media.

In having greater marketplace knowledge, an Estate Agent can increase credibility and trust with a prospect and client.