Understanding Real Estate Data Reports

Real estate data reports for the Sacramento region are released each month by Trendgraphix.  Here on our blog we provide these monthly real estate statistics along with analysis to help you understand our local market. Below you’ll find a sample of each report and we’ll explain what each line or number represents and what it means to you as a home owner or future home owner.

Homes For Sale, Pended Sale, Sold & New Listings
This report shows the total number of homes that are currently for sale, new to the market, pended sale and sold during a particular month.
The month is displayed on the x-axis (bottom) and the total number of homes is on the y-axis.
At the top of each report is a key to indicate what each line represents:  
For this report, the light green bar depicts the total number of homes active on the market as of the last day of the month. The dark green bar shows the number of closed sales during that month. The red line represents the number of homes that went from active to pended sale during the month.  Homes that just came on the market during the month are shown with the blue line. At the bottom of each report is a summary comparison of each category versus the previous month and also versus the same month a year ago.
For example above, in the month of September 2017 (9/17)
3,188 new homes came on the market, there were
a total of 4,541 homes on the market at the end of the month.
2,383 homes went pended sale and 2,493 homes closed escrow during that month.

 Average Price Per Square Foot
This report shows the average price per square foot of a given area. “Sac/Pla/Eld/Yol Counties combined” along the top indicates the area that is being displayed.
Price per square foot is calculated by dividing the sales price of a home by its square footage.  The average price per square foot for a given area combines all of the closed sales for each month, represented by the blue bar in this report.  These numbers can vary tremendously depending on the size of a home and its location.  For instance, smaller homes tend to sell for a higher price per foot than larger homes.  It also doesn’t take into consideration the condition of the home.  Comparable home sales would more likely be used to determine the actual value of a home rather than the price per foot, although it does give an indication of price appreciation within a zip code.

Average Days on Market / Sales Price to Original List Price Percentage

This report displays both the average days on the market before a home went pended sale and the percentage of their original list price that sellers accepted.

The orange bar displays the cumulative days on market for all homes that went pended sale (accepted an offer) during that month while the green line across the top shows the percentage of the original list price that sellers accepted.  A 99% list price to sales price ratio is a clear indication that we’re currently in a seller’s market.  Also, using the original list price for this report does not factor in price reductions; the data is calculated using the price of the home when it first came on the market.

Median Price

 The median price represents the “middle” of our market statistically. To calculate this number, you would arrange all of the closed sales each month from highest to lowest, then find the price in the middle… Luckily, Trendgraphix does this for you each month!

Average Price For Sale vs. Average Price Sold
The green line is the average list price and the red line is the average closed sales price. It has nothing to do with value, but simply shows where the sales activity is happening. As the average price continues to rise, this is a sign of sales activity in the upper price ranges.

Months of Inventory (Based on Closed Sales)

This report shows the Months of Inventory for a given area. “Sac/Pla/Eld/Yol Counties combined” along the top indicates the area that is being displayed.
 

Months of inventory is calculated by dividing the number of active listings in a month by the number of closed sales during that same month.  The general idea is, “if no more homes came on the market we would completely run out of available homes in ___ months at the current rate of sale.”  The number in the blank is our months of inventory.  This number can be determined by using either closed sales or pended sales.  A healthy/balanced market would have between three and six months of available inventory.