Sacramento Metro Real Estate Market
My “Swing Indicator”, similar but not identical to an EKG because of the granular elements (zip codes), tells me when the general direction (via momentum) is increasing, decreasing, or unchanged in the current month. When aggregate momentum is too high or too low, the consequences are usually more of the same.
There is no perfect indicator of the future direction of prices. Showing the Median Price and its Momentum together makes it easier to explain how crossing the X axis “warns” the investor that the momentum is triggering a possible action. Because Momentum is not perfect, there is a time lag and, therefore, lost opportunity to either gain more or lose less from the actual peak/trough to the crossing of the X axis.
When a momentum is positive, it indicates a “BUY” for the commodity being measured. And when negative, it indicates a “SELL”. Aggregating all momenta and charting them shows how healthy a market is.