Listing Inventory

I hear Realtors complaining about the amount of homes they are carrying in this challenging Central New Jersey Real Estate market, but when we had a fast paced market those same Realtors complained about how few homes they had on the market at any given time. There is good in having a larger inventory even in this current market.

 A recent survey of real estate professionals across the US revealed that the overwhelming majority (91%) saw real estate getting tougher or staying the same during the first half of 2007. Only one in ten (9%) of those surveyed noted an increase in their business during the last six months. Analysts aren’t surprised, as real estate markets across the country are experiencing severe drought. This economic trend has created a major shortage of business for many agents, and tremendous challenges for listing agents as inventories have backed up and expired listings are high.

But this climate presents unusual opportunities to real estate agents who are willing to work the listing side of the business, as many of us at Re/Max Classic Group are. When inventories are high, and average days on market (DOM) long, sellers are unusually motivated. An opportunistic listing agent can use an economic downturn to build his business and overtake competitors. Not convinced? Here are a few reasons why:

• Good listing agents are in high demand when expireds are everywhere. Agents who know how to move properties in our Central New Jersey market stand out — their listings sell, while many agents’ inventory sits.

• Agents’ services are at a premium, while FSBOs are intimidated by housing slumps. Every seller is a motivated seller, and closing listing side transactions is much easier.

• Most agents are trying to work the buyer side of the business, allowing less competition for the agents that choose to work with sellers.

• The agents that have the most listing inventory ultimately get the most buyer leads, because buyer leads come from listings.