My response, which works for all markets, has always been: "unbelievable".

I always say "Its on fire!! Our inventory is so low..you don't know anyone thinking to sell do you?"

Pretty real!!

Real estate is great!!! Do you know of anyone wanting to buy or sell a home?

Real estate has been good for me for the past 39 years, and I fully expect it to stay that way...

Fantastic but if you are asking about a particular property or area it may vary so lets take a look together.

Hella M. Rothwell, Broker/Realtor® - the most common answer - to probe what is expected - 'It depends. Are you looking forward to buying, selling or investing?"

(And of course, 'unbelievable' answer from Alan May.

The market is great - how can I help?  

I do agree that for the most part ... people are just making small talk. 

Honestly, I doubt that most people really care.  This is small talk, like "What's up?"  People don't really care when they ask that either.

I would venture to guess that 10% of people care, tops 20%.  Maybe 10% have legitimate care as it may impact future plans and another 10% may be curious as it may impact their business (if it's somewhat related to real estate e.g. movers, mortgage brokers, people that care about interest rates, etc.)

"It's amazing right now, what market are you specifically asking about?"

Love that question!!! It's a door opener.

Some people probably care, most are just making small talk.  I'm really bad at small talk and it makes me uncomforatble.  If I am at church or a party I often don't want to talk about work (I know, I know, great places to meet future clients, but sometimes I just need a seperation).  I usually just say something like "We are doing really well and keeping quite busy."  I kind of hate it when I get that question and know it's just small talk though.  -Kasey

Hella,

Somehow, I can always tell if they really want to know or they are just asking to be polite.  I usually turn it around and ask what they specifically want to know.  A

They are asking about the market and I tell them some juicy tidbits that get them asking even more questions.

Sometimes they do and sometimes they don't really want to know. I usually have a quick answer, because of the market reports I do. 

Answer: People are buying & selling all the time. How about you?

FANTASTIC! (somewhere). Hella M. Rothwell, Broker/Realtor® 

I like your reply Alan!  On so many levels that really is a good one, and generally accurate - sometimes for good - sometimes for bad, but quite rights, real estate is "unbelievable"!

If i don't want to be bothered, I say: "Fine".  If I want to engage, I ask if "It depends on whether you are buying or selling, which are you planning to do?"

Yes, I really do think for the most part people want to know. I usually say "busy!" but I love some of the answers that have already been provided.

I tell them it's great. Thanks Dorie Dillard I should follow with "Know anyone that wants to buy or sale?"  

  Did you ever hear senior citizens talk about when they could have bought prime real estate back in the day for very little money, but didn't do it, and they regretted it?  Well NOW we have those opportunities again.   Lots of prime deals, interest rates are at rock bottom.  Let me show you some incredible buys!

It's a complex housing market, what area are you interested in that I can tell you about

Its a very busy Seller's market and we are low on inventory... Are you thinking of selling any time soon, or know someone who does?

Alan May and Richie Alan Naggar have great responses.  

Regardless of the market, there is a positive somewhere - "Inventory is super low but, my sellers are doing REALLY well right now!" 

Or, "My buyers are scooping us some fantastic deals!"

I always share the positive when asked, "How's the market?"

I tend to answer with there is always a market.

Hella - I usually answer by saying "it depends". Then if they are really interested they will ask more questions. If not, they didn't really care to know anyway.

I always answer in a positive way and include saying something to garner if they are ready to buy or sell something

Just a small talk question that is asked when they dont know what to say, the answer that you give them is really not that important.

I like Alan May's and Dorie Dillard 's answers. 

It's great - !!   That always entices intrigue ...

I like Alan's response. 

Don't get us started..... blah blah blah...

I usually would point them in the direction of one of the agents I work with frequently for the answer

I get this question all the time --- and say it is crazy again this year!   Low inventory creates this frenzy.

Goodn't be better is my standard answer.

Today would not be a great day for me to answer that question.

Hella I like it when they ask me how the market is. The question that I find amuzing is "Are you still selling real estate"?  So many agents come and go in my market that I can understand why they ask that question - but anybody that knows me KNOWS I'm in the business for keeps and not a fly by night.

Doing great!

I like my husbands answer - he is always so quick with it... "It's always good" it's his go to answer for most things "How are you" - "I'm always good", "Ho';s the weather" "It's always good"

LOL - never fails

It is awesome for the seller and awesome for buyer. Which one are you?

I just had a lady call me yesterday from blog asking the same question

That's a great question.  It depends on a lot of different factors.  Why do you ask? 

We have some super values; are you shopping?

"Terrific"! Are you looking to buy or sell at this time?

"Great for me!"

Your choice is, "Do you want to sound and act like a real estate agent?"

Then respond to such 'testing' question with "Its great!"
You will have failed the test.

Largely based on the age of the citizen, somewhat on the environment in which you exist and the context in which the question was delivered, a better response can be made that will attract instead of repel the one asking.

Based on the agents awareness, responses could be:

"Real estate is Forever. You know that already. Tell me more about your question?  " or

"All real estate is local. The reality is every real estate condition exists simultaneously. What community do you live in?" or

"Hey, I'm doing fine, how about you?" or

IF you really don't want to talk, phone is ringing, cashier just handed you the receipt, the light turned green, say "Great!"

Yes " If you really want to know my answer then it will cost you "

I just refer them to my good friend for an answer

Such a BS question. It really means how are you without any concern as to how the person feels.  I am tired of discussing it with dopes who believe the media over the folks in the trenches.

Very oportunistic

It is a good time to take advantages of real estate opportunities.

"Great!"    Depending upon where I am, who they are etc it'll escalate from there.  ;)

Some want to know, some don't. But I keep close tabs on the market and can give a two minute answer on current state of affairs.

Yes, all the time:) And i can talk about it for hours, but I try to hold myself and listen more. 

The answer is always positive.

Hella M. Rothwell, Broker/Realtor® Real estate is a good investment.

If you keep up on the market, it should be easy to give them a snapshot and then expand if they are actually interested.

Hella M. Rothwell, Broker/Realtor® Great!

You could always ask what aspect of it they want to know about.