Southern California Luxury Homes
You can play this video to learn how to use this map
THIS IS WHERE THE SPATIAL MATCH SEARCH MAP WOULD DISPLAY – GO TO MY ORIGINAL CONTENT TO USE THE FUNCTION http://www.homeispalosverdes.com/southern-california-luxury-homes-2000000/
Southern California Luxury Homes
For a LIVE update on the top priced quartile of homes in the Palos Verdes Estates market, here’s what’s happening with…
- Inventory
- Prices
- and the proprietary MarketActionIndex™
If you have any questions about how to interpret the below chart, you can go here
This map will automatically update every Sunday night / Monday morning
So what is the Market Action Index especially as it relates to Southern California Luxury Homes?
Market Action Index Definition (MAI)
We developed the MAI so you immediately know if it’s a Buyer’s or Seller’s market. 30+ indicates a Sellers market for Southern California Luxury Homes
One of the unique market statistics provided in the Altos Market Reports our proprietary Market Action Index (MAI). Some of our subscribers ask about this stat and why we created it. In short, there are times in a market (both city and zip code level) that some of the key market stats that we use to analyze a market run counter to each other. This is especially true for the Southern California Luxury Homes market
Perhaps median price is increasing at the same time that inventory levels are increasing while days-on-market is relatively flat. Using these three market stats individually makes it difficult to determine what is exactly is going on. We developed the MAI to roll together some of these key stats (and a few others) to generate a number, indexed to 30?, to determine if the local market is trending towards a buyer’s market or seller’s Southern California Luxury Homes market.
From our reports: Residential house prices are a function of supply and demand, and market conditions can be characterized by analyzing those factors.
The Market Action Index (MAI) illustrates the balance between supply and demand for Southern California Luxury Homes, using a statistical function of the current rate of sale versus current inventory. An MAI value greater than 30 typically indicates a Seller’s Market (a.k.a. Hot Market) because demand is high enough to quickly absorb available supply. A hot market will typically cause prices to rise. MAI values below 30 indicate a Buyer’s Market (a.k.a. Cold Market) where the inventory of already-listed homes is sufficient to last several months at the current rate of sales. A cold market will typically cause prices to fall.
Keep in mind that an MAI value close to 30? probably means that the local market is balanced or neutral. So if the MAI for your local market is somewhere between 27-33, then it’s likely to be either a buyer’s market or seller’s market based on the individual street or home area that a particular property is in.
Original Content Site: George Fotion, HomeIsPalosVerdes.com