Listings Are King As Seller’s Market Returns

Good news – we are seeing a recovery in our local housing market in Northern Virginia. In fact, we have moved into a “seller’s market.” Based on the pace of sales and latest inventory absorption rates for Q1 in Northern Virginia (3.1-month supply of homes) –Prince William County (2.0 months), Fairfax County (2.9), Alexandria City (3.1), Loudoun County (3.3), Arlington (4.3) – we have only 2-4 months of inventory on hand. Anything less than 5-6 months is defined here as a “seller’s market.”

As the spring market recovers Rainmakers with the most listings will win. Several Rainmakers I’ve talked to recently are licking their chops. Not only are local MLS licensees down (as high as 20%-25% dropouts in some markets), but also most of their shell-shocked competitors have stopped cultivating sellers (i.e., stopped investing in marketing). This void leaves the field open for Rainmakers to capitalize on the spring market recovery.

How? One trend we see is Rainmakers re-focusing their direct marketing on NEW target seller groups, groups who are “most likely to sell” – this strategy also gives their established (fatigued?) farm lists a rest.

Specifically, Rainmakers tell us they are re-investing some of their direct marketing dollars (fewer dollars, but more targeted) on sellers likely to list soon. They do this by narrowing their farming/prospecting direct mail lists. Some of the targets these Rainmakers are targeting include: expires, FSBOs, withdrawns, newly divorced, new parents, executives/military likely to transfer, NOD owners (short sales), newly married, etc. Another technique one Rainmaker is using is farming 20 neighbors around all her listings, not only with “Just Listed/Just Sold” but a consistent 12-month “It’s a great time to move up” campaign. In a nutshell, now is the time to generate listings with low-cost targeted “ready, aim, fire” rifle-shot marketing rather than high-cost “hit and miss” mass-media marketing.

Let us know what target groups you are focused on to generate new listings right now.