Houses Price Index and Sales Statistics
The House Price Index, or HPI, takes into consideration more than just the sale price. The data is cleaned up to remove extreme outlier, and the final data gives a trend in the market.
The median sale price
is usually chosen over the mean as it is not effected by extreme outliers. There is an equal number of sales both below and above the median sale price.
Days on Market
, or median listing to contract days. The fewer days on market, the hotter the market tends to be. However, the longer it is taking for properties to sell, the more it leans to a buyers' market.
Median price per square foot
generally follows the trend of the median sale price, but it can be used to assist in figuring out what type of properties are selling. Smaller units tend to have a higher price per square foot, all other things being equal.
shows the number of listings available compared to the listings inventory of the past few years. Generally, if prices are rising, price per square foot is rising, you could expect to see that the inventory is low. If inventory is high, then buyers have lots to choose from and prices are not usually climbing.
, when read with the other data, can help you to glean what is going on with the market. At times when the prices are rising and inventory is low, if sales are strong, then you could infer that the market is strong. If, however, sales volume is slowing while prices are rising, it could indicate that a shift is coming to the market.
Sales to Active Listing Ratio
is the final piece. This shows the relationship between the total sales volume and current active listings. The higher the ratio, the stronger the market is for sellers. The lower the ratio, the better it is for buyers. Anything over approximately 0.2 is a pretty strong market. We are seeing ratios as high as 1, which indicates that the sales volume matches the listings volume, which is a very strong selling market, and a great time to sell.