Sac Metro Real Estate Averages
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’, and ‘Lean Score’.
Summary of Jay's Averages
Average Lean Score©
“Lean Score” for each tracked zip code (52) and County (3), attempts to portray the market health. It is not tracked to show trends. Rather, like a balance sheet, it shows a point in time.
Average Median Price
Time and research proves that NO zip code or area is immune from market swings. The average median price shows the same shape as the individual prices. Some areas have higher swings and higher prices. The Average smooths out the anomalies and outliers.
Average 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.
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.
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.
Listings go from New (Active), to Pending, maybe back to Active once or more times, then to Sold, if not Canceled or Expired. Pended listings represent Demand for New and Active listings.
When Months of Inventory goes below 1, it means there are more houses being sold than being listed. When Demand exceeds Supply, prices go up. And vice versa. So the forces on Demand and Supply have to, at least, exist in some modicum of force or we run out of product to sell.