Enzle's "Home Market Index"
Growth Trends Distilled
A Single Composite Index
Tracking Multiple Key Market Attributes
The Home Market Index is designed to depict how the Real Estate Market is currently trending; by having this information readily available, users are empowered to know "on-the-go" how the market is doing with concrete numbers that track the following categories....
Using metrics from the categories listed below, Enzle then takes into account standard financial and real estate practices (i.e. - looking at only the past 3 months for comparable homes, year over year analysis, etc) in order to generate the Home Market Index. The HMI is affected by all 9 of the below categories and can be used to have a general sense of where the market is trending.
Closed Prices are directly affected by which way the real estate market is trending. In a healthy market, as the market trends towards a seller or buyer market, the prices typically follow.
Similar to closing prices, listing prices can indicate how the market has shifted in comparable home pricing. In a healthy market, the pricing typically follows where the market is trending.
One key aspect about the Real Estate Market is differential between the list and sale price of a home. By tracking this, Enzle is able to determine if a market is being artificially inflated.
Closed Sales are integral to sensing when a market is heating up and have a direct impact on the other indicators. Closed sales will typically determine when other indicators trend in either direction.
Listed homes are directly connected to closed sales; inventory is determined through the "push" and "pull" of homes on and off the market and help determine the reasoning behind increased sales.
Days On Market
While the raw number of closed and listed homes determine the inventory, the velocity at which homes are put on and off the market aide in showing the activity and volatility of said market.
In determining inventory, there are a select few ways for inventory to rise, one of which is the creation of a new home, which requires the sale of land. This indicator captures that phenomenon.
Similar to listed homes, Land Listings acts as a counter-balance to the land sales indicator, ensuring a spike in land sales is due to a market fluctuation and not simply due to increased availability.
Price Per Sqare
Price per Square Foot is the normalized price by the size of the home. The key capture here is to see if larger and smaller homes have the same dollar spend per square foot of home.