“The Market is in Active Recession”
This is a quote from Trevor Abrahamsohn who is the managing director of Glentree International in London regarding the upper end of the market in London. I am being asked every day if our market is in a recession, and I love Trevor’s response–with the key word being ACTIVE and I think that is a great word to use in our market. You can see from the following graph that February 2016 sales are down about 10% from February 2015.
This next graph show the inventory levels comparing February2016 to February 2015.
I have also included a market update graph from February 28,2016 so you can compare February 28, 2016 inventory by price point to inventory February 2015.
When you see more than five month’s inventory available to sell compared to the sales in that price point it is my opinion that you have a buyer’s market. I further believe a balanced market is four month’s supply of inventory to sales or four times the inventory over sales–anything less is a seller’s market. Look at the inventory levels by price point and the sales in the same price point and it is my opinion when you reach five month’s inventory you are in a buyer’s market. I also believe that our inventories will be increasing the closer we get to our spring selling season.
I like to think we have an active slow down in our market at this time, not an active recession and I am of the opinion this will continue as we advance further into this year.
As a seller in this market you cannot rely on your agent to put your listing on MLS and put a sign on the property–you need to have your agent market direct to the buyer also.
Do you know what “word of click” is? If you don’t, you need to talk to me about my digital marketing program.