As our president, Neal Hanks, mentioned in his recent report, residential real estate markets remain active while commercial activity is flat in many respects. Just how do we get to those conclusions? Our market reports are full of metrics that help us reach those conclusions.
See for yourself. Acquaint yourself with these definitions from our QMR market metrics glossary so you can understand the value of our real estate market metrics. Then read the online PDF of the first 2016 Quarterly Market Report.
- Active Days on Market (ADOM): the average amount of time the current supply of homes has been on the market. When considered alongside Closed Days on Market (CDOM), the metric can describe whether existing inventory matches buyer preferences and the general direction of the market.
- Closings by Price Bracket: a description of the distribution of sales across price brackets during the period. It is useful for quickly analyzing which price categories for properties are more commonly sold in a given geography.
- Closed Days on Market (CDOM): the average amount of time it takes to market and close on a property. This is useful for monitoring whether a market is accelerating or decelerating.
- Distressed Sales: the percentage of sales over the last quarter that are either in foreclosure, short sale, or represent real estate owned by financial institutions.
- Home Supply: the total number of properties of a certain type in a specific geography. Unless otherwise noted, this number includes all types of residential properties reported by the Multiple Listing Service (MLS).
- Home Values ($): used to indicate whether a market is favoring buyers or sellers. Generally zero to six months of inventory indicate increasing sales prices, six to twelve months indicate a stable market, and if the market exceeds twelve months, prices are falling.
- List/Sell Ratio (L/S): a comparison of the final sales price to the most recent list price prior to the property going under contract. The ratio can be used to compare buyers’ and sellers’ opinions of value.
- Median Sales Price: a means of tracking property where one half of closed sales prices are higher and one half lower. This statistic is less at risk of being influenced by properties on either extreme of the pricing spectrum.
- Months of Inventory (MOI): the relationship of sales pace to the number of properties currently on the market if no additional homes were added to the supply. It is calculated by determining the number of homes sold per month and dividing by the total number of properties for sale on the last day of the month. It is susceptible to changes in supply and/or pace.
- Sales Pace/Days on Market: tracks the average days on market for the county by the average number of properties selling per month. When the two metrics are considered together, the trend lines can indicate changes in the market. Trend lines opposite one another indicate a recovering/accelerating market, and lines moving closer indicate a slowing market.
- Sold Homes: the number of closed transactions in each price bracket. This is the ultimate snapshot of how communities are doing in the current real estate market.
- Supply Pie Graph: the number of individual properties on the market on a specific date in a given geography across each price range.