Mapping Daily Movements
Similar to other market indices (think Dow Jones or S&P 500), the Enzle Market Index looks to simplify the Real Estate Market into a single number that looks at the market indicators and compiles them in such a way to track their trend direction and magnitude. The EMI has a range between -30 and positive 30, with positive numbers indicating a trend towards a "Sellers' Market" and with negative numbers indicating a trend towards a "Buyers' Market." The picture below shows a gauge chart that is used to track the current-daily EMI.
Enzle Market Index
The barometer for reading the real estate market
Enzle Market Index for the day; a positive index indicates the market is trending sellers', whereas a negative index indicates the market is trending buyers'
Enzle Analytics also includes tracking the EMI over time as well, typically looking at anywhere from the past two years to as granular as the past week. This gives the user a sense of when exactly markets begin to indicate a transition between market states. Below is an example of what this would look like:
Enzle Market Index plot over time. The EMI varies from day to day as it takes in a range of calculations to de-season and normalize the measurements for accuracy.
The final piece is to track the individual indicators to help explain why the EMI is either up or down. These calculations come as Year-Over-Year percent changes, scores, and raw values. It is important to note, however, that Enzle does not track individual home values. Enzle is only interested the market fluctuations and as such does reflect on individual home values; that is up to your local real estate agent or professional to advise on your homes value.