The Market Analysis page visibly breaks down the zip code, giving important data on the overall market health. Is this area a seller's, buyer's or neutral market and what underlying factors are determining this?
The Market Analysis section also contains details related to Market, Supply and price declination. This section can also be downloaded individually as an Excel file by selecting the download icon.
Definitions are outlined below.
MSA 1yr risk of decline:
- Evaluate the 1 Year risk of decline along with the collateral Risk Level
- The one year risk of decline is a proprietary HouseCanary metric that measures the probability that this market's median home prices will be lower 12 months from now than the current market median price. This one-year chance of loss is derived through HouseCanary's multivariate time series models using a combination of fundamental and technical indicators. Source: Local MLS, HouseCanary analysis
- The market index is designed to measure supply versus demand at a local zip code level. The index ranges from 0-100 where values of 41-60 indicate a market in equilibrium (neutral). Values above 61 indicate that demand exceeds supply, and that the local area is a seller's market. Values below 41 indicate that supply exceeds demand, and that the local area is a buyer's market. Demand is measured using indicators such as sales volume, changes in listing prices, and days on market. Supply is measured using indicators such as inventory and the number of new listings. Source: Local MLS, HouseCanary analysis
- The market status is the summary conclusion on the market index. Specifically whether the market is currently classified as a buyer's market, seller's market or neutral. For more details see market index definition. Source: Local MLS, HouseCanary analysis
- The current days on market is the average number of days since listing for all current listings on the market for the given geography. The calculation represents a 13-week rolling average to minimize rapid swings in the data. Source: Local MLS, HouseCanary analysis
Months of Supply:
- The months of supply is a metric to reflect the pace at which listing inventory is turning over in the local market. The calculation reflects the total listings on the market divided by the 3-month rolling average of sales volume. Generally, less than 5 months of supply is considered inflationary due to the constrained nature of listings available for sale. A value greater than 7 months of supply is typically considered oversupplied and deflationary. Source: Local MLS, HouseCanary analysis