How We Calculate Our Market Metrics

Each chart in your market report is built from listing data. This article explains what each metric measures, how we calculate it, and what it tells you about a market.

All metrics are calculated monthly. Each month includes all full weeks that fall within that calendar month. Data goes back to July 2023.

Not all metrics use the same method to represent a month. Some (like Active Listing Count and Total Listing Count) are weekly averages that reflect typical conditions during the month. Others (like New Listing Count and Pending Listing Count) count each unique home once across the full month to measure activity.

Our Data Dictionary

Active Listing Count

What it measures: How busy the market is on a typical week.

We count the number of homes listed as active or new during each week of the month. Then we average those weekly counts together to get a single number for the month. This gives you a sense of how many homes were available to buyers at any given point during that month, rather than just a snapshot of one day.

A rising active listing count means more homes are coming to market. A falling count means inventory is tightening.

New Listing Count

What it measures: How many sellers entered the market that month.

We count the number of distinct homes that appeared as a new listing at any point during the month. Each home is counted only once, even if it showed up in multiple weekly snapshots.

This is a leading indicator. When new listings start climbing, it often signals that sellers are gaining confidence. When they drop, sellers may be holding back.

Pending Listing Count

What it measures: How much buyer demand there is.

We count the number of distinct homes that went under contract at any point during the month. Again, each home is counted only once.

A high pending count relative to active listings means buyers are moving quickly and competition is strong. A low pending count means homes are sitting longer before finding a buyer.

Total Listing Count

What it measures: The overall size of the market each week.

We count all homes that were active, new, pending, or new pending during each week of the month, then average those weekly counts. This gives you the broadest view of market activity, including both available homes and homes already under contract.

Median Listing Price

What it measures: The middle price point for active listings.

For each home that was active or new during the month, we look at its most recent list price. We then find the median of those prices. Half the homes were listed above this number and half were listed below it.

We use the median rather than the average because a small number of very high-priced homes can pull an average up in a way that does not reflect what most buyers are actually seeing.

Median Listing Price per Square Foot

What it measures: How price compares to home size.

For each active or new listing during the month, we divide its most recent list price by its square footage. We then find the median of those values across all homes in the market.

This metric helps you compare markets or neighborhoods where home sizes vary a lot. A market with large homes might have a lower median list price but a higher price per square foot than a market with smaller homes.

Median Days on Market

What it measures: How long homes are taking to sell.

For each home that was active or new during the month, we find the maximum number of days it had been on the market. We then find the median of those values.

Using the maximum days on market per home (rather than a single weekly snapshot) gives a more complete picture of how long homes are actually sitting before going under contract or selling. This ensures we capture the full time a home has been on the market, even if it appeared in multiple weekly snapshots.

A falling days-on-market number means buyers are acting faster. A rising number means homes are taking longer to move.

Median Square Feet

What it measures: The typical size of homes on the market.

For each active or new listing during the month, we look at its square footage from the most recent week it appeared. We then find the median square footage across all homes in the market.

This helps you understand whether the homes available in a market skew large or small, and how that is changing over time.

Number of Homes With Price Reductions

What it measures: How often sellers are cutting their asking price.

We compare each home's most recent list price this month to its most recent list price from the previous month. If the price is lower, we count it as a reduction, regardless of how many times it changed during the month.

A rising price reduction count is a sign that sellers are adjusting their expectations to meet the market. It often appears before broader price declines show up in sold data.

Months of Inventory

What it measures: How long it would take to sell all the homes currently on the market at the current pace of sales.

We estimate how many homes are leaving the market each week: either going under contract or being removed. We find the median weekly rate for the month, then compare that to how many homes are currently available. That tells us how long it would take to clear the current inventory at that pace.

A result below 3 months is generally considered a seller's market. Above 6 months is generally considered a buyer's market. The range in between is considered balanced.

Note: For reports covering a single zip code, this number is calculated directly from that zip code's data. For reports covering multiple zip codes, this number represents the median months-of-inventory value across the zip codes in the market, which is a close approximation but not an exact combined-market calculation.

All metrics use single-family and multi-family residential properties. Multi-family represents condominiums and townhomes. Data is derived from weekly listing snapshots.