Sacramento Metro Real Estate

Composite Averages

  • Overview
  • Major
  • Financing
  • Averages
  • Momentum
  • Counties
Using data from 52 zip codes, an Average is derived for New, Active, Pended, and Sold listings, the Median Price, its momentum, and derivative calculations for price momentum, ‘7 Yr Mmmm Average’, ‘Supply’, ‘Demand’, ‘Lean Score’, ‘Appetite’, and ‘Turnover’.

History

Critical data elements for the current month and each of its occurrence for 10 years earlier. The averages are shown to help describe how the current market deviates from average for these data items.
Composite Average History
Composite Average History

Average Lean Score®

The proprietary “Lean Score®” is composed of each tracked zip code (52), attempts to portray the market health, is not tracked to show trends, and uses Short Term and Long Term averages for each data element. Like a balance sheet, it shows a point in time.
Composite Average Lean Score®
Composite Average Lean Score®

Inventory

The real estate market was created to exchange “products”: money and houses. When a house is made available to prospective buyers, there is a response to that “Product”. That response can be shown by the current and historic data and the trends and shapes of those lines. An ACTIVE listing is briefly also NEW. When a seller and buyer enter escrow, the “Product” becomes PENDING. If that buyer and seller execute the contract, the “Product” becomes SOLD. The life of all “Products” (MLS only) can be seen in these charts and blurbs.
Composite Average Inventory
Composite Average Inventory

Median Price

Composed of each tracked zip code (52), with its calculated momentum, the average median price represents the shape and behavior of our metropolitan market. Time and research proves that NO zip code or area is immune to market swings.  Some areas have higher swings and higher prices. The Average smooths out the anomalies and outliers.
Composite Average Median Price and Momentum
Composite Average Median Price and Momentum

Median Price & Momentum

Commodity brokers put a heavy reliance on momentum for the underlying price change of the commodity they’re trading. It’s a year-over-year calculation depicting the direction and force of the price change.  Maximizing your profits as a home seller requires the exclusive use of TIME to trigger your selling decision.

Momentum Gain

Hindsight and math are beautiful when you prove you were right AND made a profit from being right. Using math and a commodity approach to buying LOW and selling HIGH, momentum would profit as shown with the math here.
Composite Average Momentum Gain
Composite Average Momentum Gain

Consumption

Composed of the all statuses of listings for each tracked zip code, and compared to the Last 10 years (this specific month of each year), a percentage is given that represents the current Demand FOR Supply compared to the average of the Last 10. Listings go from New (Active), to Pending, maybe back to Active once or more times, then to Sold, if not Canceled or Expired. New listings add to the Active listings from last month which comprise Supply. Consumption is a simple calculation of demand and supply. Listings go from Active (New), to Pending, to Sold. From Pending back to Active means escrow failure. Supply is Active listings which grows by New listings and Demand is the depletion of supply by Pending and Sold listings.
Composite Average Consumption
Composite Average Consumption

Appetite

The data for New and Pending listings render this calculation called “appetite” for new residential listings for the month.
Composite Average Appetite
Composite Average Appetite

Turnover

Active and Sold listings render this calculation called “turnover” of residential listings for the month.
Composite Average Turnover
Composite Average Turnover
  • Overview
  • Major
  • Financing
  • Averages
  • Momentum
  • Counties
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