The RPR Guide to Market Trends and Housing Stats

Welcome to The RPR® Guide to Market Trends and Housing Stats. This eBook is designed to help real estate agents understand and utilize the wealth of data provided by RPR^® (Realtors Property Resource^®). By analyzing various market trends and housing statistics, you’ll stay ahead of the curve and better serve your clients.

In this guide, we’ll cover the essential metrics you should be following and discuss their importance in evaluating the real estate market.

In RPR, you have three ways to quickly access Market Trends. Let’s dive in and explore each method, shall we?

• Residential Market Trends: First up, the most straightforward approach is to head over to the Research section from the main navigation menu and choose “Residential Market Trends.” Simply search for your desired area, and voila! You’ll be taken to the Market Trends page packed with valuable information

• Neighborhood Search: Now, if you’re more interested in getting to know a specific neighborhood, RPR has got you covered, too. Select “Research” again, but this time opt for “Neighborhood Search.” Enter the area you’re curious about and hit search. You’ll land on a Neighborhood page that not only provides market stats for that particular area, but also offers insightful details on the people living there, local economy and quality of life. Talk about comprehensive!
• From a Property: If you’re already previewing a property, don’t forget to make use of the “Market Trends” tab. This handy feature allows you to view trends for the area surrounding the subject property–perfect for getting an idea of how the neighborhood’s market is performing.

Never miss a beat with RPR Mobile™! The RPR app is a treasure trove of metrics that empowers you to analyze the housing market–all from your phone.

With this intel, you’ll guide your clients through pricing and offer strategies, as well as current market conditions. And you’ll do it with confidence, without skipping a beat. They’ll be raving about your expertise to their friends and family in no time!

Understanding the Market Type Indicator

The Market Type Indicator is a useful metric for real estate professionals and their clients, as it provides valuable insights into the current state of the local market. By understanding whether the market favors buyers, sellers or is balanced, you can make informed decisions, optimize your strategies and offer better advice to clients.

RPR’s Market Type Indicator uses the industry standard of months supply of inventory to gauge market conditions. By calculating the months supply of inventory, you can identify whether a market is a seller’s market (<= 5.5 months), a balanced market (>=5.6 and <=6.5 months) or a buyer’s market (>=6.6 months).

Months supply of inventory measures the balance between supply and demand in the real estate market. It is calculated by dividing the number of active listings on the last day of a given month by a rolling 12-month average of newly pending listings. A lower number indicates a seller’s market, while a higher number signals a buyer’s market.

In a seller’s market, there is a limited inventory of homes, creating competition among buyers and often leading to higher prices and faster sales. In contrast, a buyer’s market presents a larger inventory of homes, giving buyers more negotiating power and often leading to lower prices and slower sales. A balanced market offers a relatively even playing field for both buyers and sellers.

Understanding the months supply of inventory can help you adjust your strategies accordingly, such as pricing a home more aggressively in a seller’s market or being more patient in a buyer’s market.

As a REALTOR^®, it’s essential to interpret market data and present it to your clients in a clear, easy-to-understand manner. To do this, focus on the following key metrics:

By understanding and interpreting these key metrics, you’ll be better equipped to guide your clients through the complex world of real estate.

Understanding Median Estimated Property Value

The Median Estimated Property Value represents the midpoint of all estimated property values in a given area. Meaning that half of the properties have estimated values above the median and half below. This metric helps eliminate outliers that could skew the average, providing a more accurate representation of the overall market. These values are generated by valuation models and are not formal appraisals, but can serve as a helpful tool in understanding market trends and pricing strategies.

Understanding the Median Estimated Property Value is important because it can influence pricing strategies, guide negotiations and help your clients make informed decisions about buying or selling a property.

Tracking changes in estimated property values over time is another helpful metric and is useful at identifying potential opportunities or challenges. By monitoring these changes, you can gain insights into the direction the market is moving, and whether it’s appreciating or depreciating.

To effectively track estimated price changes, you should:

• Regularly review market data to identify patterns and trends in estimated property values.
• Compare current median estimated property values to historical data to gauge market performance over time.
• Analyze how external factors, such as changes in interest rates, employment rates and local development projects, may influence estimated property values.

By understanding and tracking median estimated property values, you can identify market opportunities for your clients. Some potential opportunities to consider include:

1. Undervalued Properties: In a market where the median estimated property value is steadily increasing, you can identify properties with estimated values below the median as potential investment opportunities. These properties may offer a higher return on investment as the market continues to appreciate.
2. Emerging Neighborhoods: Monitoring median estimated property values can help you identify up-and-coming neighborhoods with strong growth potential. Guiding clients to invest in such areas can yield significant long-term returns.
3. Pricing Strategies: Understanding the median estimated property value in a given market is informative when it comes to developing pricing strategies for both buyers and sellers. For sellers, pricing their property competitively based on the median estimated value can help attract more interest from potential buyers. For buyers, understanding the median estimated value can help them negotiate a fair purchase price and avoid overpaying.

By staying informed about median estimated property values and tracking changes over time, you can provide valuable insights to clients and identify market opportunities.

The Housing Facts and Stats chart provides an overview of metrics related to the real estate market at different geographical levels, including city, county, state and country. This data helps you gain a better understanding of the current market conditions, trends and how they compare across different regions.

Housing Facts and Stats can help with:

1. Informed Decision Making: By comparing metrics such as Median Estimated Home Value, Median List Price and Median Home Age across different areas, you can make more informed decisions when advising clients on buying or selling properties.
2. Market Trends Analysis: Metrics such as 12-Month Change in Estimated Value, Change in List Price over last month and 12-Month Change in List Price provide insights into the market trends over time. This data will help you identify patterns and anticipate shifts in the market, allowing you to better serve clients.
3. Property Ownership Insights: Own vs. Rent offers an understanding of the homeownership landscape in a specific area. This information is valuable when you’re advising clients on investment opportunities.
4. Construction Activity Assessment: Metrics like total dollar value of all buildings for which permits were issued, percentage change in permits for all buildings and percent change in dollar value for all buildings, provide insights into the construction activity in a given area. This data helps you gauge the growth and development trends in a region, which can impact property values and demand.
5. Competitive Analysis: By comparing metrics at various geographical levels, you can identify areas with more favorable market conditions, enabling them to better position your clients’ properties or recommend investment opportunities.
6. Client Education: Housing Facts and Stats data provide an opportunity to educate clients about the local market, helping them set realistic expectations for their buying or selling experience.
7. Marketing and Promotion: Use this data to create compelling marketing materials that showcase your expertise in the local market and highlight the most relevant market trends and statistics for a target audience.

The Significance of New Listings vs. Active Listings

New Listings offer a snapshot of the rate at which properties are entering the market, which can be indicative of overall supply. On the other hand, Active Listings provide a broader perspective on the current inventory, including properties that have been on the market for some time. By comparing new and active listings, you can gain a better understanding of the overall market dynamics and advise clients accordingly.

Several key metrics can help you assess active listings and their impact on the market. These include:

• Median List Price: This metric offers insights into the pricing trends for properties currently on the market. Tracking changes in the median list price can help you identify shifts in the market and adjust their pricing strategies accordingly.
• Number of Listings: Monitoring the number of active listings provides an understanding of current inventory levels and how they compare to historical data. This can help you identify potential supply and demand imbalances in the market.
• Median Price per Sqft: This figure offers a useful benchmark for comparing property values on a per-square-foot basis. It can help you and your clients assess the relative value of different properties.
• Total Dollar Volume: The total dollar volume of active listings is an indicator of the overall market value of the current inventory. By tracking this metric, you can gauge the health of the market and identify potential opportunities or challenges.
• Median Living Area Sqft: This metric provides insights into the size of properties currently on the market. Understanding the median living area can help you and your clients identify trends in property sizes and make informed decisions based on their needs.

By monitoring and analyzing active listing data, you can assess market conditions and make informed recommendations to your clients. Some ways to use active listing data to assess market conditions include:

• Identifying shifts in supply and demand: Comparing the number of active listings to historical data can reveal whether the market is experiencing an increase or decrease in inventory. This information can help you adjust your strategies and advise clients on the best course of action.
• Recognizing pricing trends: Tracking changes in the median list price for active listings can help you identify pricing trends in the market. This information can be useful for both buyers and sellers as they set their price expectations and negotiation strategies.
• Evaluating market opportunities: By analyzing active listing data, you can identify potential market opportunities, such as undervalued properties or emerging neighborhoods with strong growth potential.

By understanding the significance of new and active listings, monitoring key metrics and using active listing data to assess market conditions, you can provide valuable insights and guidance to your clients, which can help them tackle their wish lists.

The Role of New Pending Listings in the Market

New pending listings are properties that have gone into a pending status within a given month, indicating that a sale agreement has been reached but the transaction has not yet closed. This metric is important for understanding the market absorption rate, which is the pace at which available properties are being sold. It also sheds light on the price points of listings that are resonating with buyers.

Monitoring new pending listings helps to assess the demand for properties in a particular area and provides insight into the types of homes that are attracting buyer interest. This information can be useful in guiding clients through the decision-making process, whether they are buying or selling a property.

Interpreting Pending Listings Data

Pending listings offer a snapshot of properties that were in a pending status on the last day of the month, along with key metrics such as Median List Price, Number of Pending Listings, Median price per Sqft, Total Dollar Volume and Median Living Area Sqft. This end-of-month view helps you understand inventory that is waiting to close, price points and the duration on the market. To effectively interpret pending listings data, you should consider:

1. Inventory levels: Comparing the number of pending listings to historical data can help identify whether the market is experiencing an increase or decrease in pending inventory, which can indicate overall demand for properties.
2. Price points: Analyzing the price points of pending listings can reveal trends in the market, such as which types of properties or price ranges are attracting buyers. This information can be valuable for advising clients on pricing strategies and identifying potential investment opportunities.
3. Duration on the market: Understanding the time it takes for properties to go from listing to pending status can provide insights into market conditions, such as whether it is a buyer’s or seller’s market.

Leveraging Pending Listings Information for Your Clients

Using Pending Listings information effectively can help you provide valuable guidance to your clients. Some ways to leverage this data include:

• Advising on pricing strategies: By understanding the price points of pending listings, you can help clients set competitive prices for their properties, increasing the chances of a timely sale.
• Identifying market trends: Monitoring new pending listings and their corresponding price points can help you identify emerging market trends, such as the popularity of specific property types or neighborhoods. This information can also guide clients in making informed decisions about buying or selling a property.
• Assessing market conditions: By analyzing pending listings data, you can gauge the overall demand for properties and advise clients on the best course of action, whether it’s to wait for a more favorable market or to proceed with a sale or purchase.

By understanding the role of New Pending Listings in the market, interpreting Pending Listings data and leveraging this information for clients, you can stay ahead of market trends and help clients make informed decisions that align with their wants and needs.

Analyzing Sold Listings Data

Sold listings data offers valuable insights into the real estate market, as it summarizes key statistics for properties that sold each month. By analyzing metrics such as Median Sold Price, Number of Properties, Avg. Sold to List Price percentage, Median Days in RPR, Median Price Per Sqft and Total Dollar Volume, you can gain a better understanding of market trends, buyer behavior and property pricing. This information can be important in guiding clients through their buying or selling journey.

Average Sold to List Price Percentage and Median Days in RPR

The Average Sold to List Price percentage is an important metric that illustrates the difference between the list price and sold price of properties. This percentage reveals whether buyers are paying over or under the asking price and can be indicative of market conditions. A high percentage suggests a strong seller’s market, while a lower percentage may indicate a buyer’s market.

Median Days in RPR refers to the time it takes for a property to move from listing to sold status. This metric offers insights into how quickly properties are selling in a given market. Shorter median days on the market can indicate a fast-paced, competitive market, while longer median days may suggest a slower market with more room for negotiation.

Median Price per Sqft and Total Dollar Volume

Median Price per Sqft is a useful metric for comparing property values on a per-square-foot basis. This figure can help you and your clients assess the relative value of different properties and better understand market trends in terms of property pricing.

Total Dollar Volume represents the combined value of all properties sold within a given month. This metric offers insights into the overall health of the real estate market and can be used to identify potential opportunities or challenges. By monitoring the Total Dollar Volume, you can gauge market performance and better advise clients on the most appropriate course of action.

The Importance of Months Supply of Inventory

Months Supply of Inventory is a key metric that provides insights into the current inventory level in a given market and its percentage change over the last month and year.

By calculating the number of months it would take to absorb the available inventory based on the number of properties that typically go into pending status each month, you can gain valuable insights into market conditions. This information is crucial in helping clients make informed decisions about buying or selling properties and can be a strong indicator of whether a market favors buyers, sellers or is balanced.

Assessing Market Conditions Using Months Supply of Inventory

Lock in on current market conditions using Months Supply of Inventory by considering the following factors:

• Buyer’s Market: A higher Months Supply of Inventory (generally above 6.6 months) indicates a buyer’s market, which means there is an abundance of properties available for sale, and buyers have more negotiating power.
• Seller’s Market: A lower Months Supply of Inventory (typically below 5.5 months) signals a seller’s market, which suggests a limited supply of properties and increased competition among buyers, often leading to higher sale prices.
• Balanced Market: A Months Supply of Inventory between 5.6 and 6.5 months indicates a balanced market, where the supply and demand for properties are relatively equal, and neither buyers or sellers have a significant advantage.

Advising Your Clients Based on Inventory Levels

Leveraging Months Supply of Inventory data can help you provide strategic advice to clients:

• Buyers: In a buyer’s market, you can encourage clients to take advantage of increased inventory and potentially lower prices. Conversely, in a seller’s market, buyers may need to act quickly and be prepared to compete with other buyers.
• Sellers: In a seller’s market, you can advise clients to list their properties at competitive prices, as they are more likely to receive multiple offers and potentially sell at a higher price. In a buyer’s market, sellers may need to be more flexible with their pricing and negotiation strategies to attract potential buyers.
• Investors: Real estate investors can use Months Supply of Inventory data to identify markets with potential investment opportunities. A balanced market may offer the best opportunities for long-term investments, as it is more stable and less prone to dramatic price fluctuations.

By understanding the importance of Months Supply of Inventory and assessing market conditions using this metric, you can provide valuable advice to your clients.

The Value of Sold Public Records

Sold Public Records provide a comprehensive view of all properties sold in a market area each month, regardless of whether they were listed on an MLS or not. This data offers valuable insights into the real estate market and can be instrumental in understanding market trends, buyer behavior and property pricing. However, it is essential to be aware of the limitations of Sold Public Records, particularly in non-disclosure states where some or all sale prices may not be available through public records.

Analyzing Sold Home Stats

By examining key metrics such as Median Sold Price, Number of Properties, Avg. Sale to List Price percentage, Median Days in RPR, Median Price Per Sqft and Total Dollar Volume, you can better understand the nuances of the real estate market. Analyzing these metrics can help you:

1. Identify market trends and shifts in buyer behavior.
2. Determine the most desirable price points in the market.
3. Assess the pace of the market, based on the time it takes for properties to move from listing to sold status.
4. Evaluate property values on a per-square-foot basis, facilitating property comparisons.
5. Gauge the overall health of the real estate market and its potential opportunities or challenges.

Utilizing Historical Data for Future Success

Historical Sold Public Records data can be a powerful tool, as it enables you to:

1. Track market trends over time, allowing you to make more accurate predictions about future market behavior.
2. Identify patterns in property pricing and sales volume, which can be useful in guiding clients through their buying or selling journey.
3. Understand the impact of economic or regulatory changes on the real estate market, helping you advise clients on the best course of action.
4. Leverage historical market performance to create compelling marketing materials and demonstrate expertise in the local market.
5. Utilize data-driven insights to make more informed decisions and offer strategic advice to clients, ultimately leading to increased success in the real estate industry.

This guide provides an overview of the essential market trends and housing statistics available through RPR® (Realtors Property Resource®). By understanding these metrics and their significance in the real estate market, you can make better decisions for your clients and grow your business.

Continually monitoring and interpreting this data will help you stay ahead in the competitive world of real estate. Good luck!