Terminology
Median Sales Price
Median Sales Price refers to the midpoint price of all homes sold in a specific area during a given time period. This means that half of the homes sold for more than the median price and half sold for less. Unlike the average price, the median is less affected by extremely high or low sales prices, making it a more accurate reflection of typical market conditions.
Median List Price
Median List Price refers to the middle price of all homes listed for sale in a specific area during a given time period. It means that half of the homes are priced above this amount, and half are priced below. This metric is useful for gauging the overall price trend of a market, as it is less affected by extremely high or low property prices compared to the average list price.
Price Per Square Foot
Price Per Square Foot is a metric used to determine the cost of a property relative to its size. It is calculated by dividing the property's total price by its total square footage. This metric allows for easy comparison of property values across different sizes and locations, helping buyers and investors assess whether a property is priced competitively within the market. It’s commonly used in residential and commercial real estate to evaluate the cost-effectiveness of a property.
Median List Price Per Square Foot
Median List Price Per Square Foot is a metric that represents the middle value of the list prices per square foot of all properties for sale in a given area. This means half of the properties are listed at a price per square foot above this value, and half are listed below. It provides a useful snapshot of property pricing trends relative to the size of homes in a specific market, allowing buyers and investors to compare property values more easily.
Homes Sold
Homes Sold refers to the total number of residential properties that have completed the sales process within a specific period, typically a month or year. It indicates the volume of transactions where ownership has officially transferred from the seller to the buyer, reflecting market demand and activity. This metric is commonly used to assess market trends, including the health and competitiveness of a housing market.
Pending Sales
Pending Sales refers to the number of properties that have gone under contract but have not yet closed. This means that a buyer and seller have agreed on terms, and the property is in the process of being sold, but the transaction has not been finalized. Pending sales indicate strong buyer interest and activity in the market, offering insight into future closed sales and overall market trends.
New Listings
New Listings refers to the number of properties that have been newly put on the market for sale within a specific time period. This metric is used to gauge housing supply and market activity, providing insights into how many fresh opportunities are available for buyers. A rise in new listings may indicate increased seller confidence or a seasonal uptick, while a decline might signal tighter inventory or fewer homes being put up for sale.
Total Inventory of Homes Available
Total Inventory of Homes Available refers to the total number of homes that are actively listed for sale at any given time in a specific market. This metric includes all available properties, regardless of their type (e.g., single-family homes, condos, townhomes). It provides a snapshot of housing supply in the market and is often used to gauge whether the market favors buyers (more inventory) or sellers (less inventory).
Months of Supply
Months of Supply is a metric that measures the number of months it would take to sell all the current inventory of homes on the market, assuming no new homes are listed and sales continue at the current pace. 6 months or more generally indicates a buyer's market, with more supply than demand. Less than 6 months suggests a seller's market, where demand outpaces available inventory.
Median Days on Market
Median Days on Market is a metric that measures the middle value of the number of days properties have been listed for sale in a particular area or market. Half of the homes sell faster than this number, and half take longer. It's a key indicator of how quickly homes are selling, with shorter median days on market suggesting a seller's market and longer times indicating a buyer's market or slower sales conditions.
Average Sale to List Price Ratio
Average Sale to List Price Ratio is a metric that measures the percentage of a property's asking price that it ultimately sells for. It is calculated by dividing the final sale price of a property by its original list price, then multiplying by 100 to get the percentage. For example, if a home was listed at $500,000 and sold for $475,000, the ratio would be (475,000 / 500,000) * 100 = 95%. This metric helps gauge market conditions, seller negotiation strength, and overall pricing accuracy.
Homes Sold Above List Price
Homes Sold Above List Price refers to the percentage of properties that have sold for more than their initial listing price. This metric is used to gauge the competitiveness of the real estate market. A high percentage indicates strong demand and a competitive market where buyers are willing to pay more than the asking price. Conversely, a lower percentage suggests less competition and potential price adjustments.
Price Drops
Price Drops refers to the reduction in the listing price of a property. This metric indicates how much the price of a property has decreased over time from its original listing price. Price drops can be a signal of various factors, such as market conditions, property issues, or the seller’s urgency to sell. Monitoring price drops can help buyers identify potential deals and gauge market trends.
Off Market Within Two Weeks
Off Market Within Two Weeks refers to properties that are listed for sale and subsequently removed from the market within a period of two weeks. This can indicate how quickly homes are selling, or potentially how quickly they are being withdrawn from active listings for reasons such as going under contract, being sold, or being taken off the market for other reasons. This metric helps assess the speed of transactions and the demand for properties in a given market.