051. What Needs to Happen to Get the Market Moving in California

Here are some tidbits on 2010′s market trends; the main two factors to consider to get our housing market moving; and how realtors can benefit from social media strategies.

Welcome everybody to another episode of the Reside Daily Bite; I’m your host, David Doucette. I’m very excited today for a couple of reasons: (1) you can see we have a new look. We’re a little more widescreen and that is because I have a new flip video camera, the Kodak Zi8. Now, the Kodak is very similar to the Flip video, both are HD but the Kodak has an external little jack that you can plug an external microphone in, like a lapel mic or a boom mic. I really like that feature, that’s why I chose the Kodak.

I’ve also eliminated the Reside Daily Bite intro and the music. So, that really gives you 10 seconds back of your day and I’m happy to do that and I promise to not take that 10 seconds and then, incorporate it into more talking time. So, I really am giving you those 10 seconds back.

What I wanted to talk to you about today is, this week in Los Angeles, it is social media week and a good agent friend, David Bruce, put together a panel the other day called, “Google versus Facebook”. We talked about how realtors can best use the internet and Google and Facebook to really reach out to their sphere of influence and also to reach out to people they don’t know. And DB -if you’re watching -great panel, great job putting that together. DB also invited Rick Cunningham, who is an owner of several West Side Keller Williams franchises. Rick gave his real estate outlook and that’s what I wanted to talk to you about today, specifically, the Month Supply of Inventory. The month supply in the West Side right now is about 4 ½ month supply. What that means is, traditionally, if it’s a 6 month supply of inventory or less, it’s a seller’s market –meaning that’s the amount of time it would take to sell the existing inventory. If it is 6 months or more, then, it is a buyer’s market –meaning there’s a lot of inventory out there.

What we’re seeing now, (we’re 4 ½ month supply of inventory) it should be a seller’s market – it really isn’t. It’s a funny market right now. The buyers are on the sideline. The buyers are waiting. There’s definitely activity here on the West side. But overall, in general, the buyers are waiting, the buyers are being hesitant. And there are two main factors, not just in our marketplace but in other areas in California, that are really affecting this and we’ll talk about those. And those two are: (1) the unemployment rate in California is above 12% – and that’s high. We’d like to see that more at 5 ½ % or below. So, we have the (1) high unemployment rate; (2) consumer confidence is low.

What is happening is: we have unemployment high up here; we have consumer confidence low here. What we need to do to get the housing market really moving again: bring down the unemployment rate, bring up the consumer confidence. That will get the housing market going again. We know it’s a funny market. It’s a funny time. This isn’t going to happen overnight. It’s going to take some time for this to happen. But that’s really what we need to happen. And, that’s really a good indication if you want to see what’s going on and following the market. Really follow our unemployment rate here or maybe even in your own state and also, follow the consumer confidence. That’s really going to help out.

That is it for me today. My name is David Doucette, you can email me david@residerealestate.com. Thank you so much for checking out, the Reside Daily Bite.

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