Can Consumers Trust Market Data Received in the Mail?

By
Real Estate Agent with Regent Property Group 0480809

I really hate receiving real estate marketing flyers in the mail, especially when the data is wrong.  They are usually not factual and the average consumer doesn't know that they shouldn't believe what they read.

In yesterday's mail, I received a marketing piece from an agent that claimed he can "save my sellers and buyers thousands of dollars."  He never actually says how he can save them money, but he then talks "facts" about the immediate area.  He claims that in the "Lake Travis Southshore Area" that there are currently 552 active listings and 64 sold in February. He's trying to tell people that there is an 8.6 month absorption rate and that it indicates a "buyer's market" and that he can help the buyers get a deal on a property.

austin tx real estate statistics absorption rateI'm not exactly sure what he means by the "Lake Travis Southshore Area" as that's not a term that is used, but the areas that are bordering and south of Lake Travis are Lakeway, Bee Cave, and Spicewood.  Since I couldn't get his numbers to match up, I ran numbers with just the zip codes of 78734 (Lakeway and Travis County area near Lakeway) and 78738 (Bee Cave and The Hills) as well as numbers with 78734, 78738, & 78669 (Spicewood).

With just Lakeway and Bee Cave, there are currently 463 Active houses for sale. Through March, there were 253 pending and sold properties. That equates to about 84.3 sales a month, which is 5.49 months of inventory. That means, if no other properties came on the market and each current listing had to sell, it would take about 5 1/2 months to sell them all.  That's an absorption rate.

With Spicewood added into the mix, there are currently 657 Active houses for sale. Through March, there were 307 pending and sold properties. That equates to about 102.3 sales a month, which is 6.42 months of inventory.

What's my point?  My point is that a market is deemed to be "balanced" at approximately 6 months of revolving inventory.  I don't see how this agent can tell people that we are in a Buyer's Market with 8.6 months of inventory when it's just not true. I didn't eliminate builders' inventory homes. I didn't eliminate by age or size. I only did houses and not condos, but there aren't many condos in this area, so the numbers wouldn't change enough to add up to the numbers this agent is presenting.

If you receive marketing statistics in the mail, please have the sense to question the information presented. We are NOT in a buyer's market in the Austin TX Area. Sales have increased and overall, Austin is selling on average at 97.07% of asking price in 80 days, while the median is 97.7% of asking price in 50 days.

Buyer's Market? Really? It's more like a Supply and Demand issue as inventory shrinks and sellers are asking the right prices for their homes!

Call me if you would like factual information about the Austin Real Estate market.

 

**Are You Packed Yet?**

donna harris Realtor Austin TX blog

Donna Harris, REALTOR®
RE/MAX Austin Skyline
www.DonnaHomes.com

Donna@DonnaHomes.com
austin-texas-homes-for-sale.com

Austin TX Real Estate and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, CedarPark, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Hill Country Austin TX Real Estate and beyond. Whether you're buying or selling an Austin home, I'll be with you every step of the way. 

For real time Austin TX listings,click here.

** Multi-Million Dollar Producer Year after Year **

** Platinum Top 50 Finalist 2011 out of almost 9000 agents in Austin TX**
** Five-Star Professional 2011 & 2012 **
** RE/MAX 100% Club **

Copyright© 2012 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
*
Can Consumers Trust Market Data Received in the Mail? * was first published on donnahomesblog.com.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Real Estate Sales and Marketing
Location:
Texas Travis County Austin
Groups:
All Thing's Texas
Austin Texas Realtors
Realtors®
Austin Metro Area
Texas Real Estate
Tags:
travis county real estate
austin tx houses for sale
houses for sale austin tx
real estate in austin tx
austin tx real estate

Comments 7 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the envelope to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
834,279
Fred Carver-Top Realtor Victoria, BC
Accredited Victoria BC Real Estate Consultant
Re/Max Camosun Victoria BC Real Estate

Hi Donna...reminds me of the Press twisting the Truth, as we all know talk to your Realtor. Unless the Local Press picks up on his Info, not likely Consumers will determine the Absorption time etc..Send out your Newsletter and go into detail why and how it's a balanced market and pricing is still critical.

 

Cheers

April 11, 2012 09:20 AM
Rainmaker
997,506
Karen Fiddler, Broker/Realtor
Laguna Beach & Lake Arrowhead, CA (949)510-2395
HOM Sotheby's Intl Realty, 949-510-2395

Sometimes you can and sometimes you can't. Consumers need to realize it's just marketing and to do their own research.

April 11, 2012 11:18 AM
Ambassador
1,529,921
Gary Woltal
Assoc. Broker Realtor SFR Dallas Ft. Worth
Keller Williams Realty

Donna, so often some of these agents fluff things up to their own liking. I am glad that you shine the light on the real facts for the area.

April 11, 2012 11:19 AM
Ambassador
337,647
Emily Medvec
Realtor, Santa Fe NM |CNE CRS RSPS | 505-660-4541
Keller Williams Santa Fe

Your blog reaches more people than those flyers. Keep telling the story online. Excellent presentation of the facts. In the end, the sellers and buyers will know who to trust.

April 11, 2012 11:54 AM
Rainmaker
1,368,882
Donna Harris
Realtor, CDPE & ASP - Hill Country Lakeway Austin
Regent Property Group

Fred, I would, but paper newsletters are so 2003.

Karen, Exactly! Just Marketing to grab attention, even if it's negative attention.

Gary, But I'm not sure what benefit an agent has to tell sellers/home owners it's a buyer's market...

Emily, I sure hope so!

April 11, 2012 12:20 PM
Rainmaker
419,861
Jim Patton
Realtor - Stanislaus & Merced county Realtor.
Century 21 M&M - 209-633-2839

Great post Donna.  More and more parts of the country are sellers markets but you sure don't hear much about it in the news.  As for the agent that sent the flyer, not all agents are honest ufortunately.  As soon as an agent starts claiming that he can save you thousands of dollars red flags should start going up. 

April 11, 2012 02:19 PM
Rainmaker
1,368,882
Donna Harris
Realtor, CDPE & ASP - Hill Country Lakeway Austin
Regent Property Group

Jim, I'm surprised each time I hear about a good market because we definitely don't hear about it on the news.

April 15, 2012 06:09 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the leaf to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
1,368,882

Donna Harris

Realtor, CDPE & ASP - Hill Country Lakeway Austin
Are you Packed for Austin? I can help!!
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the cat to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

This blog is to help educate Buyers, Sellers and even other Realtors across the country.  Each market is different and the way Real Estate is done is different.  Austin Real Estate is completely different than Dallas, California and Florida and everywhere else in between.  Some times there will be other things besides real estate as I like to rant and rave as much as the next!!  Come back often!

Donna Harris, REALTOR® with RE/MAX
\"Donna
Promote Your Page Too

\"Homes

\"Texas
\"blogarama" style="overflow:hidden;" seamless scrolling="no" id="custom-widget-content" onload="resizeIframe()">Your browser does not support iframe.