Well, if sdr is having a better year, I’m still all ears. Somehow, he’s disappeared into the woodwork after being asked to support his own assertion that business is better than it’s ever been.
The sales/inventory rate went from 3/4 to 1/10 this year. That means only 1 out of every 10 listings are selling, versus 3 out of every 4 last year. Statistically speaking, John Lundin needs 10 listings to sell 1!
This is a crude way how I got my data:
Last year: Inventory 4K, sales 3K, ratio = 3/4
This year: Inv=20K, sales down 35% = .35*3K=2K, ratio =2/20=1/10
So last year you saw 4,000 signs, this year we see 20,000 signs. But with sales down 35% from last year, remember, we are down 35% from 3K sales, not down 35% from today’s level of inventory! So only 1 of 10 listings would sell.
It’s much harder to increase your income when you’re in a competitive field. We don’t know how many of Lundin’s sales complete, or how many fall out of escrow. Falling out of escrow if another trend, as buyers balk at repairs, can’t meet contingencies, get wet feet at the lender table, or just can’t qualify. It would be interesting to ask Mr. Lundin how this year stacks up to last year.
