The Ratio of Your Pending Listings to New Listings and Why It Matters
As we work to create a “bullet proof” listing presentation, we need to keep in mind the one ratio that provides the clearest insight as to the state of your market.
There are many statistics and numbers used to measure the health of the real estate market. There is one statistic, however, that gives the most current, up-to-date and clear picture of how the market is doing and that is the “pendings vs new listings ratio.”
In this week’s video, I discuss how it’s calculated and what the ratio means. I also challenge you to choose one day of the week to calculate this ratio for your local multiple listing service as well as for your own business. The market could be great. The market could be slow. The important thing is to make sure your ratio is outperforming that of the market.
Inside of the vlog I also explain how being aware of this number can help you differentiate yourself from all the other agents who answer the question that we are all asked countless times throughout the day: “How is the real estate market doing?”
In the near future, I will share with you a second statistical cornerstone that supports the foundation we are building to intensify our listing presentations.
Watch the video now to learn more about a ratio that you need to know and why it matters:
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3 Comments
Deb Cullen
05/20/2015Cape Coral, FL
active in the past 7 days = 88
pending in the past 7 days = 167
HOT HOT HOT!
Thanks for your wonderful videos Jack! Love them….
Jack
11/13/2015I am glad to hear that you are doing so well!
Sincerely,
Jack Cotton
M'Lissa Swift
12/05/2018Hello Jack!
I was actually in the process of doing exactly what you describe here for my local market when I stumbled upon your video! The current ratio of pending to active listings in my local market is 44%. I am trying to lay some guidelines for what is considered hot versus cold or neutral markets. Would you say a hot market is anything above 50%…? What range of ratios would you correspond with each a hot, neutral, and cold market? Thank you so much for your help in getting a better grasp of the market!