Definitions
General
Advertised Subdivision - Advertised Subdivison names are based on either local adoption of the source as presented in public records, or names used by builders and developers in marketing. Subdivisions were added to SmartCharts in March 2014 based upon a minimum number of sales in the past two years. Any legal or advertised subdivision that has fewer than 12 sales over the prior two years (averaging less than half a sale per month) was excluded. In November 2019, we refreshed the advertised subdivisions with the same threshold. For statistics to be useful, this minimum was necessary or the reports would just have a bunch of zeroes for months with no sales activity
Average - Average is the mean value of the dataset. The Average Sales Price is the sum of the total sales dollar volume divided by the total number of units sold. The Median Sales Price is the Sales Price at which half of all sales are above and half are the sales are below. When you have outliers in the underlying data, using the median is often more reflective of the “true” trend. The average is reflective of the data if the data set is fairly homogenous. For example, the average price is less likely to be skewed by outliers if you filter the chart for a particular square foot range.
Contract- Properties in Contract status have a ratified contract and are pending settlement.
List Price - List price is the current or last list price of a property.
Living Area Sqft - Living Area Square Feet is the interior finished floor area (square footage) of the property. These values are sourced from public records data.
Median - Median is the middle value of the dataset. The Average Sales Price is the sum of the total sales dollar volume divided by the total number of units sold. The Median Sales Price is the Sales Price at which half of all sales are above and half are the sales are below. When you have outliers in the underlying data, using the median is often more reflective of the “true” trend. The average is reflective of the data if the data set is fairly homogenous. For example, the average price is less likely to be skewed by outliers if you filter the chart for a particular square foot range.
MoM- Month-Over-Month is the percent change for a given statistic from the preceding month.
Original List Price - Original list price is the initial price the listing was put on the market at. While a price can be reduced over the time a property is for sale, the original list price is used in all calculations and graphs.
Pending - Pending properties are when a contract has been submitted and is ratified or in the process of being ratified. It includes the statuses of Contingent and Contract
Sales Price - Sales price is the gross sales price. It is the price the seller accepted from the buyer in the contract. It excludes seller concessions. This is also called the Gross Sales Price.
YoY - Year-Over-Year is the percent change for a given statistic from the same period in the prior year.
Market Activity
Active Listings - Properties in Active status are available for sale and have no ratified contracts pending at the end of the time period.
All Pendings - This represents listings that were Contingent or Under Contract at the end of the time period, regardless of when the listings were contracted.
New Listings - New listings represents the number of new properties placed for sale during the time period.
New Pendings - New Pendings are those listings that changed to either Contingent or Under Contract during the time period (New Pendings=New Under Contracts + New Contingents). To clarify, there are instances where a listing goes to contract (included in the “new pendings” bucket) and is then settled in that same month (thus, also included in the “sold” bucket).
Sold Listings – Refers to those listings that went to settlement and closed during the time period.
Pricing Trends
Average List Price (Actives) – The average list price for homes that ended the period as active listings.
Average List Price (New Listings) – The average list price for homes placed for sale during that time period.
Average List Price (New Pendings) – The average list price (at time of contract) for listings that went to Pending during that time period.
Average List Price (Sales) – The average list price (at time of contract) for homes sold in that period.
Average Sold Price – The average gross price for homes that closed during that period.
Median List Price (Actives) – For all active listings at the end of the time period, the middle list price in the series, where half the sales are listed for a lower value and half are listed at a higher value.
Median List Price (New Listings) – The middle list price for properties placed for sale during the time period, where half the new listings were listed at a lower value and have the new listings were listed at a higher value.
Median List Price (New Pendings) – The midde list price for properties that changed to Contingent or Under Contract status during the time period, where half the listings entered pending status with a lower value and half the listings entered pending status at a higher value.
Median List Price (Sales) – For all closed sales in the period, the middle list price in the series, where half the sales are of lower value and half are of higher value. The list price used is the price at the time of contract, not the original list price.
Median Sold Price (Sales) – For all closed sales in the period, the middle closed price in the series, where half the sales are of lower value and half are of higher value.
Pricing Ratios
Average SP to LP Ratio – The Average Sold Price to (Last) List Price Ratio for homes sold in a given period. This represents the average of the ratios for the gross sales price to the final list price (at time of contract) for individual listings. Example scenario to help illustrate:
Listing A: List Price = 1,000,000; Sold Price = 800,500; Ratio = 80.5%
Listing B: List Price = 200,000; Sold Price = 184,000; Ratio = 92%
Listing C: List Price = 100,000; Sold Price = 96,500; Ratio = 96.5%
Listing D: List Price = 370,000; Sold Price = 360,000; Ratio = 97.3%
Listing E: List Price = 150,000; Sold Price = 146,500; Ratio = 97.7%
Listing F: List Price = 200,000; Sold Price = 200,000; Ratio = 100%
Listing G: List Price = 200,000; Sold Price = 202,000; Ratio = 101%
In this scenario, the SP to LP Ratio is ((80.5+92+96.5+97.3+97.7+100+101)/7) = 95.0%. To further clarify, we do not take the aggregate sold price for all home sales (1,989,500) and divide by the aggregate list price for all home sales (2,220,000) which would result in an average of 89.6% in the above scenario.
Average SP to OLP Ratio – The Average Sold Price to Original List Price Ratio for home sold in a given period. This represents the average of the ratios for the gross sales price to the original list price for individual listings that closed.
Median SP to LP Ratio – The Median Sold Price to (Last) List Price Ratio for homes sold in a given period. This represents the middle ratio of the gross sales price to the final list price (at time of contract) across the series. Example scenario to help illustrate:
Listing A: List Price = 1,000,000; Sold Price = 800,500; Ratio = 80.5%
Listing B: List Price = 200,000; Sold Price = 184,000; Ratio = 92%
Listing C: List Price = 100,000; Sold Price = 96,500; Ratio = 96.5%
Listing D: List Price = 370,000; Sold Price = 360,000; Ratio = 97.3%
Listing E: List Price = 150,000; Sold Price = 146,500; Ratio = 97.7%
Listing F: List Price = 200,000; Sold Price = 200,000; Ratio = 100%
Listing G: List Price = 200,000; Sold Price = 202,000; Ratio = 101%
In this scenario, the Median SP to LP Ratio is 97.3%, as Listing D is the middle value of the series when sorted from lowest to highest ratio. The median is particularly useful in larger datasets, as a handful of outliers on the low side (like 80.5% in the above scenario) can distort the trend.
Median SP to OLP Ratio – The Median Sold Price to Original List Price Ratio for home sold in a given period. This represents the middle ratio of the gross sales price to the original list price across the series.
Days on Market
This metric group covers 3 different metrics related to the average time a listing is on market prior to settlement: Days to Contract, Days Contract to Settle, and Days to Settle.
Days on Market: Calculation based upon the number of days a property is listed before receiving a contract. It is calculated based upon the property and accumulates between listings. It is the total number of days from the date when a property first comes on the market (list date) to the time is taken off the market due to a sale (contract date) or off market condition (off market date). If a property changes between Active and other statuses during the life of the listing(s), the cumulative on market time is tracked.
Contract to Settle: This is the amount of time between the date a listing was taken off the market due to a contract being received (contract date) and the date the transaction was settled (close date).
Days to Settle: This is the total amount of time between when a property first comes on the market (list date) until the date the transaction was ultimately settled (close date). For any sale in a given period, the Days to Settle equals the "Days to Contract" + "Contract to Settle".
Average Contract to Settle - For homes that sold in a given period, the average number of days between the contract date and settlement date.
Average Days on Market (DOM) - For homes that sold in a given period, the average number of days from list date to contract date.
Average Days to Settle - For homes sold in a given period, the average number of days from list date to close date (including the time between contract and settlement).
Median Contract to Settle - For homes that sold in a given period, the middle number of days between the contract date and settlement date for the series.
Median Days on Market - For homes that sold in a given period, the middle number of days from list date to contract date for the series.
Median Days to Settle - For homes sold in a given period, the middle number of days from list date to close date (including the time between contract and settlement) for the series.
$ per Square Foot
Average List $/SqFt (Actives) – The average list price-per-square-foot for homes that ended the period as active listings. Note, the calculation used by SmartCharts is on a transactional basis, not using the aggregate square footage for all properties and then dividing by the aggregate price for all properties.
Average List $/SqFt (New Listings) – The average list price-per-square-foot for homes placed for sale during that time period.
Average List $/SqFt (New Pendings) – The average list price-per-square-foot (at time of contract) for listings that went to Pending during that time period.
Average List $/SqFt (Sales) – The average list price-per-square-foot (at time of contract) for homes sold in that period.
Average Sold $/SqFt – The average gross price-per-square-foot for homes that closed during that period.
Median List $/SqFt (Actives) - For all active listings at the end of the time period, the middle list price-per-square-foot in the series, where half the sales are listed for a lower price-per-square-foot and half are listed at a higher price-per-square-foot level.
Median List $/SqFt (All Pendings) - The midde list price-per-square-foot for properties that ended the period in Contingent or Under Contract status, where half the listings entered pending status with a lower price-per-square-foot value and half the listings entered pending status at a higher price-per-square-foot value.
Median List $/SqFt (New Listings) - The middle list price-per-square-foot for properties placed for sale during the time period, where half the new listings were listed at a lower price-per-square-foot value and have the new listings were listed at a higher price-per-square-foot value.
Median List $/SqFt (New Pendings) - The midde list price-per-square-foot for properties that changed to Contingent or Under Contract status during the time period, where half the listings entered pending status with a lower price-per-square-foot value and half the listings entered pending status with a higher price-per-square-foot value.
Median List $/SqFt (Sales) - For all closed sales in the period, the middle list price-per-square-foot in the series, where half the sales are of lower price-per-square-foot value and half are of higher price-per-square-foot value. The list price used is the price at the time of contract, not the original list price.
Median Sold $/SqFt (Sales) - For all closed sales in the period, the middle sold price-per-square-foot in the series, where half the properties closed with a lower price-per-square-foot value and half closed with a higher price-per-square-foot value.
Supply and Demand
Absorption Rate (Closed Sales) = (Closed Sales in period / Active Listings at end-of-period)
The absorption rate is the rate at which homes are closing in a given area during a given time period. The higher the absorption rate, the faster homes are selling relative to supply. Absorption rate (closed sales) is calculated by dividing the number of closed sales in a given month by the number of available homes for sale at month's end. It is the inverse of months of supply based only on one period's sales count (rather than the 12-month average pace as applied to months of supply). Generally speaking, an absorption rate above 20% is considered a seller's market as it translates to 5 months of supply (based on a single month's sales rate).
Absorption Rate (New Pendings) = (New Pendings in period / Active Listings at end-of-period)
The absorption rate based on new pendings is the rate at which homes are going to contract in the most recent month relative to the number of active listings at month's end. The Absorption Rate based on new pendings will often be higher than the absorption rate based on sales, particular leading into the spring market. This is due to the normal 1-2 month lag between contract and closing and the fact that not all new pendings ultimately close. To get a feel for the percentage of new pendings that ultimately close for your area (and home characteristic), check the "Seller Success Rate" metric.
Contract Ratio = (All Pendings at end-of-period / Active Listings at end-of-period)
A measure looking at the total number of pendings at month's end and how the total compares to the number of active listings. "All Pendings" encompasses any listings that were Under Contract (including contingent contracts) at month's end, including those that entered the month in Under Contract status. A higher Contract Ratio signifies a relative increase in contracts compared to supply, and indicates the market is moving in the seller's favor. A lower Contract Ratio signifies a relative decrease in contracts compared to supply, and indicates the market is moving in the buyer's favor. In areas or segments that have a contract ratio greater than 1, there are more listings under contract than active. For example, a Contract Ratio of 1.2 means there are 1.2 listings under contract for every 1 listing that is active. Important note when looking at the Contract Ratio: Areas with a high volume of short sale contracts will have a higher Contract Ratio due to the fact that short sales tend to sit in contract status a longer time than non-short sales, inflating the contract ratio due to listings idling in pending status from several months prior.
Months of Supply = (Active Listings at end-of-period / Average monthly sales over last 12 months)
Months of Supply (also known as "Months Supply of Inventory") tells you how many months it would take for all the current homes for sale on the market to sell, given the sales rate for that market. The SmartCharts calculation takes into account the seasonal fluctuations of selling activity by applying the average sales rate of the prior 12 months. 4 to 6 Months is generally considered a balanced market; less than 4 months a sellers' market as there are more buyers than homes available; more than 6 months can be considered a buyers' market as there are more homes for sale than buyers to purchase them. Use the facet/characteristic bar in SmartCharts to gauge which home types, price ranges or home size segments have the most demand relative to supply.
New Pending to New Listing Ratio = (New Pendings during period / New Listings during period)
The New Pending to New Listing Ratio provides insight into the relationship between purchase activity and listing activity during the time period. Because it's a ratio, it can be read as "there were x contracts written per new listing added last month". The higher the ratio, the more interested buyers there are relative to potential sellers. In the hottest markets and market segments this ratio can approach or even exceed 1:1, particularly when listings are moving to contract in less than a month. This indicator provides yet another view of supply and demand for various segments in your area, compare it to historical trends to offer your client more context into current market conditions.
Seller Success Rate = (# Closed Sales / # Closed Sales + # Released Contracts)
NOTE: This metric has been discontinued for the time being, but it is being explored as a potential future feature as we're assessing the data.
Pending Sales don't always result in Closed Sales. The terms of a contingency might not be met, an appraisal might come in too high or low and the lender could balk at the agreed upon price at contract, or maybe a buyer simply got cold feet. If a pending sale leaves the pending status in any status other than "closed sale", then it is deemed a "released contract" (which is a success for neither the seller nor the buyer). SmartCharts offers the following insight via Seller Success Rate: Of all listings that moved out of pending status during a given time period, what percentage were successfully closed. It is basically the opposite of the "contract fallout rate". As trends shift in short sales and loan qualifications, what are the impacts on your local area? Could a lower seller success rate partially explain a big delta between recent pending sales volume and closed sales in your area? Need to set expectations for a buyer expressing interest in a low-priced short sale? The Seller Success Rate is one more indicator to add to your market intelligence toolbox.
Facets/Characteristics
Financing - On the Detailed Report, this section counts the number of sold listings by the New Trust Loan Type. Owner represents both Owner and Owner 2nd. Other includes: Government Bond, Other, Private, State/Local Gov'tProg, Tax Deferred Exchange and Unknown.
Attached/All - This facet encompasses any listing that falls into the categories of Attached Townhouse or Attached Condo/Coop.
Attached/Condo-Coop - Condo/Coop indicates a listing where the listing is part of a Condo or Coop building.
Attached/TH - Excluding any listings marked as Condo/Coop, the Attached/TH category includes: Attach/Row House, Back-to-Back, Duplex, Garden 1-4 Floors, Hi-Rise, 9+ Floors, Mid-Rise 5-8 Floors, Multi-Family, Over Storefront, Penthouse, Quad, Semi-Detached, Townhouse, Triplex and Vacation Rental. The Type of Garage/Parking Space value is not used in this calculation. (See Detached for related information.)
Bank-Mediated - The Bank-Mediated category includes all properties indicated as a Foreclosure (REO) or Short Sale in the MLS database.
Detached - Detached properties include: Bed & Breakfast, Detached, Double Wide, Dwelling w/Rental, House of Worship, Mobile, Other, Patio Home, Rooming House, Vacation Home. Listings that are a Condo or Coop can be included in detached if specified within the listing. The Type of Garage/Parking Space value is not used in this calculation. (See Attached and Attached/TH for related information.)
Foreclosures (REO) - Foreclosures are real estate owned (REO) properties. The property is in the possession of a lender as a result of foreclosure or forfeiture. While some information is available regarding foreclosures, this information is primarily available from lending institutions.
Short Sales - Short Sale represents a property where the sale price of the property falls short of the balance owed on the property's loan. In some jurisdictions, this piece of information is not required to be disclosed.