There are a couple of numbers we need to look at to understand where the market's at and what's happening with the market.

Number one is the pending home sell index, which had a decrease of 1.9% compared to a year ago. And again, a 1.9% decrease compared to last month. Coincidentally, it was the same number.

But when we combine that with an increase in inventory of 4.1% the month before and a decrease in interest rates because they fell back below 3%.

So we have to look at this as the whole and say:

Why would there be a decrease in sales when we've had an increase in listings and a lower interest rate?

Why aren't buyers saying, "Hey, I have more to choose from and my interest rates are going down. Why don't I own the market?"

Buyers aren't doing that. In fact, they're pulling back a little bit from the market.

The reason is...

Buyer price resistance

Buyers are saying, "Hey, it's been 112 straight months of home price increases....

What are the most expensive per square foot homes in America?

According to a recent study recently done by REALTOR.com San Jose Santa Clara had the most expensive per square foot averages across the country.

Drum roll — $1,500 a square foot, not far behind are San Francisco and Oakland with $1,200 a square foot.

Now what's the least expensive in the country? Least expensive is Decatur, Illinois at $102 and Youngstown, Ohio at $120 a square foot.

There's a big discrepancy between the two.

The reason I bring this up is because we need to know what our average per square foots are in our local market. And it's going to change by subdivision. It's going to change by micro markets. But overall, you need to know what your county averages are and then your subcategories in different market segments. That way you can speak to this as an expert.

The other thing you need to be able to do is bring these into a conversation with buyers and...

"Should I wait to buy a house?"

The real question behind that is, do they think prices are going to go down or are they going to go up?

Buyers are always debating this in their mind. They think that there's going to be some kind of dip. But statistically, according to every model we're looking at today, that's not likely because this isn't a "housing bubble." This is a "housing shortage" that we're in.

This is a supply versus demand issue more than anything else. And actually, the experts in the industry have just upgraded their projections for what they anticipate sales prices to do in 2021.

Here's the latest update:

I'm going to compare this to what they said in January. In January, Mortgage Bankers Association, Fannie Mae, Freddie Mac, Zelman & Associates, and the National Association of REALTORS consensus was that home prices during 2021 would go up 5.3%. Somewhere higher, somewhere lower, but the consensus was 5.3%.

Now,...

The National Association of REALTORS® shows that home affordability is better than it's been in the last four years.

So what does that mean?

It means that they measure what it would take for the median family in the country and their median income versus the median sales price and the interest rates that you would have to pay in this market. And they come up with how affordable it is to own a home.

The baseline number is 100. In other words, families have 100% of the median income needed to buy the median priced home in the marketplace.

Now guess what that number is today.

It's 187!

So homeowners on the median scale have 187% of what it would take for them to own a home in their marketplace.

Not only is this an amazing number, but it's much better than it was a year ago.

When we look at home prices going up, sometimes we can get in the trap of thinking that things are getting less affordable.

But the offset to this is interest...

Have we hit a hard ceiling on pricing in the country?

According to a recent study the number of homes receiving over full price has fallen dramatically. In addition the appreciation rate has slowed to 3-4% in many areas of the country. Here are some numbers that provide some insight:

• The share of U.S. homes that sold for more than their list price in 2019 fell to 19.9%, the lowest annually since 2016.
• Homes that sold above list last year typically brought in $5,100 more than the asking price, down from $5,500 the year before.

Even with record low inventory and strong demand buyers are now resisting higher prices. Why? One reason is income, over the past twenty years incomes have been relatively stable with very little growth. 

So how can we help sellers navigate the changing market landscape? One way is to explain demand based pricing. Watch the video to learn how identifying and explaining buyer demand to a seller can help them position their home to attract more showings...

I want to test the market...

I want to start high and work our way down...

I want some wiggle room...

Have you heard these comments from a seller during a listing presentation? Agents can often fall into the trap of allowing a seller to talk them into listing a home for far above what they know it will sell for and what the comparable properties in the market are receiving. 

To avoid this fate trying using the One in a Million Script.

Watch as Jim demonstrates how to present the seller with three different pricing strategies that will motivate sellers to think about a strategy rather than just the asking price. 

Do you need more leads, more listings, more buyers, and more closings? 

Explore Mastery Classes:

• Open House Mastery 
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Weekly Coaching Program: 

• The Path Performance Coaching Platform

About Jim Remley

Jim Remley is a...

But Zillow say's the house is worth .....

At some point you will hear a buyer or seller say these words to you. How you respond can determine if you will gain a client's trust or potentially lose a listing or a sale. Ultimately buyers and sellers are driven by a need to feel confident in their decision making. What they are looking for is clarity and certainty. This is often why they go in search of answers from sites like Zillow and why they sometimes embrace Zestimates. 

To be viewed as a real estate expert it's important to define yourself as someone who provides not just information but more importantly interpretation of data.  You are the consultant, the adviser, and most importantly the clients advocate. 

Watch and learn as Jim uses Zillow's own website against them by utilizing the Zillow Accuracy Chart as well as powerful scripting. 

Do you need more leads, more listings, more buyers, and more closings? 

Explore Mastery Classes:

• Open House...

The market is changing. Sellers are under pricing pressure which means our conversations with sellers about their pricing strategy needs to change. 

Patie Millen understands the power of pricing a home to accurately reflect the competitive pressures of the market her team sold $37.5 million last year with 73 closed transactions. One key to her success is her unique approach to consulting and counseling sellers. 

Watch and learn how Patie approaches the pricing conversation and how she uses a "Pricing Narrative" to help her clients understand and interpret the market data. 

Ready for a new lead generation plan for 2019?

Explore Mastery Classes:

• Open House Mastery 
• For Sale by Owner Mastery
• Expired Listing Mastery
• Sphere of Influence Mastery

Weekly Coaching Program: 

• The Path Performance Coaching Platform

 About Jim Remley:

Jim Remley is a nationally recognized expert in the field of residential real estate. Entering the real estate...

We don't want to start to low....We can come down later if it doesn't sell... Have you ever heard those words out of a sellers mouth? 

Most sellers don't understand the importance of price position and speed of sale when it comes to getting top dollar for their home. Because of this their listing can linger on the market and even become stigmatized. 

Watch this quick video on how to use the % of Asking Price Script and some key language to use when talking about price with sellers. 

Ready for FREE Starter Kit's to get excited about Lead Generation? 

Click for More information on:

Open Houses

For Sale by Owners

Expired Listings

Sphere of Influence Marketing

About Jim Remley:

Jim Remley is a nationally recognized expert in the field of residential real estate. Entering the real estate industry at the age of 19 he began an unlikely rise from college drop out to real estate Rock Star by becoming ranked in the top 1% of REALTORS® nationwide....

To help sellers position their listing to receive more showings and more offers we need to provide our clients with the consultation they need to make good decisions. Often this comes down to learning how to explain concepts that can helps sellers help themselves. Watch this quick video to learn how to use Anchor Price Point Scripts, how to get more feedback from showing agents and open house attendees, and how to normalize price reductions.

About the Author

Jim Remley is a nationally recognized expert in the field of residential real estate. Entering the real estate industry at the age of 19 he began an unlikely rise from college drop out to real estate Rock Star by becoming ranked in the top 1% of REALTORS® nationwide. Implementing game-changing strategies and deploying the latest technology advances Jim shattered sales records by listing over 150 properties in one twelve month period. At 24 he opened his first Real Estate Company and grew the company to 17 offices...