Understanding Terms
At times the Real Estate industry speaks a different language. We have all sorts of unique terms and abbreviations that we use. When looking at charts and market data that is no different. In my city/ZIP pages I have great data for you to read.
I also can supply people with Executive Summaries and Complete Market Reports (just fill out the form to the right)
I give you here a mini dictionary to help you understand what you read in these reports.
Median List Price: Median is similar to an average. Median is a measurement that ½ of the homes sold for more then the median price and ½ of the homes sold for less then the median price. Measuring via median instead of average is considered better because extremely low or extremely high priced home do not skew the data.
Average List Price: Some people want the average instead of the median. An average is obtained by adding all the figures together and then dividing by the number of figures used. Example: we have 5 things that cost 2, 3, 10, 15, 30. You add them together (60) and divide by 5 which gives the average of 12.
Total Inventory: How many homes are active for sale in the Multiple Listing Service (MLS).
Price per Square Foot: This is the average cost per square foot of the houses that are active in the MLS.
Average Home Size: A measurement in square foot of inside space of a home.
Median Lot Size: Lot size is what is outside the walls of the home; i.e. the yard, driveway, etc.
Average # Beds: Average of how many bedrooms are in the house.
Average # of Baths: Average of how many bathrooms are in the house.
Homes Absorbed: Number of homes removed from the MLS due to sales, cancelations, or expired listing during the previous week.
Newly Listed: Number of homes added to the MLS during the previous week.
Days on Market: The average of how many days a house remains in the MLS before it is sold.
Average Age: The average age of the homes active in the MLS.
Inventory: The current number of homes in the MLS
These are terms you will find if you request the Executive Summary or the Complete Market Report.
Quartiles: This is similar to median but is divided into fourths instead of halves. Quartile 1 is the top 25%. Quartile 2 is the next 25%. Etc. If you have 140 homes then the quartiles would be 35/35/35/35.
Market Action Index (MAI): This is a measurement to tell us if we have a buyers market, neutral market, or a sellers market. A score of 0 is an extreme buyers market. A score of 30 is neutral. A score of 60 is an extreme sellers market.
7 Day Sample: The points on the graph are based on the average of the previous 7 days. This graph tends to be very jagged.
90 Day Rolling Average: This is similar to the 7 day sample but the sample data is based on the previous 90 days. This graph tends to be very smooth and easier to read and see the trends.
Price Trends: This is simply a graph of the median listing prices so you can see what the market has been doing over a period of time. This is useful to seeing the trends.
% of Properties with Price Decrease: In the previous week how many of the homes listed in the MLS had a price drop.
% Relisted: The number of properties in the previous week that came off the MLS (example: expired listing) and were relisted.
Percent Flip: Properties that sold recently and then were relisted at a higher price. Typically a home purchased as a Bank Owner (REO), fixed up, and then relisted at a new higher price.
If you would like an Executive Summary please fill out the form in the top right corner of this page and one will be sent to you immediately. You can fill out the form multiple times if you would like reports from different ZIP codes.
If you ever have a question or would like to talk about your home please drop me a note at david@davidcares.com and I would be happy to help.
