Price bands and Buyer markets
A common way to view real estate is by geographical markets. A less common but equally important way to view markets is by price band. Most every market can be broken up into 4 submarkets. We refer to them as Entry, Core, High End, and Luxury.
It's important to know what your price submarkets are because those markets can vary wildly in their behavior, and thus your client's experiences can be vastly different depending on which market they fall into. Look at the Absorption Rate chart below. There is less than one month's supply of available homes in the $100-100K price range, while there are over 4 months supply in the >$1MM price range. That's different messaging that you as the agent need to communicate to your clients.
What are Seasonal metrics?
Some metrics are discussed in terms of being "Seasonal" or not, so what does that mean? Put simply, a seasonal metric has some type of observable and consistent pattern that repeats over several time periods. The best examples of this tend to be ...
The Lifecycle of Listing Metrics
There are lots of metrics that can be used to evaluate the real estate market, and they're all related to specific dates in the listing lifecycle. For example "Number of New Listings" are counted based on the Listing Date, and "Number of Closed ...
Is it a Buyer's or a Seller's market?
This is a common question, and one that can definitely be answered with statistics. To quickly get to an answer, we recommend using the Market Review dashboard, because it gives you a single page view of several metrics at once, with a short history ...
The difference between Median Price and Average Price
Median Price and Average Price are commonly reported metrics in the real estate market, but they are very different. Let’s step back to college statistics class to revisit them both, and learn why Median is preferred for housing prices. Average: the ...
Choosing Median vs Average for metrics
Some stats programs give the user the choice between using Median or Average aggregations for metrics. Domus typically does not offer that choice, and the reason is simple. The decision to choose between Median and Average for any aggregation is ...