In this article, I will show you how to calculate important monthly real estate market statistics and offer a complimentary Real Estate Market Report template that you can customize.
- How to calculate Total Transactions (and percentage change)
- How to calculate Average Sale Price (and percentage change)
- How to calculate Median Sale Price (and percentage change)
- How to calculate Transaction Price Breakdown
- How to calculate Average Days on Market
- How to determine Highest and Lowest Price Sale
- How to determine Largest and Smallest Home on Market
- How to determine Available Homes
Before we get started, take a few seconds to download the complimentary Real Estate Market Report template:
On the first day of the month, go to your MLS Home Search website or Zillow.com/homes/recently_sold/
For this example, I will use the city of Hollywood, Los Angeles, CA. The current month is November, and we are developing an October 2019 Real Estate Market Report.
1. How to calculate Total Transactions
- Click on the filter button and adjust Sold in Last to "30 Days"
- Change the For Sale option to Sold
- In the right-hand column, you'll notice the "29 results"
- Total Transactions = 29 for October
Total Transactions Percentage Change
- September's Total Transactions / October's Total Transactions = Percentage Change
2. How to calculate Average Sale Price (and percentage change)
- Use the same filter criteria from Total Transactions
- Add all of the Sold Listings together and divide by the number of sold homes
- Prices of Sold Homes: $534,000, $977,000, $1,600,000, $825,000, $1,720,000, $645,000, $825,000, $1,100,000, $600,000, $635,000, $664,000, $680,000, $1,300,000, $5,850,000, $620,000, $526,000, $1,450,000, $975,000, $1,610,000, $1,610,000, $79,200, $1,320,000, $460,000, $2,230,000, $1,040,000, $2,995, $935,000, $950,000, $935,000 = $32,698,195 Total Sales
- Formula: Sum of Total Home Sales / Total Transactions = Average Sale Price
- $32,698,195 Total Sales / 29 Total Transactions = $1,127,524 Average Sale Price
Average Sale Price Percentage Change
- September's Average Sales Price / October's Average Sales Price = Percentage Change
3. How to calculate Median Sale Price (and percentage change)
- Use the Prices of Sold Homes from Average Sales Price
- Sort the prices by greatest to least
- $2,995, $79,200, $460,000, $526,000, $534,000, $600,000, $620,000, $635,000, $645,000, $664,000, $680,000, $825,000, $825,000, $935,000, $935,000, $950,000, $975,000, $977,000, $1,040,000, $1,100,000, $1,300,000, $1,320,000, $1,450,000, $1,600,000, $1,610,000, $1,610,000, $1,720,000, $2,230,000, $5,850,000
- Since there are 29 Total Transactions, the median will be the price of the 15th home, $935,000
- Note: if there are 2 median homes due to an even number of homes being sold, the median price is the average of the 2 prices in the middle
Median Sale Price Percentage Change
- September's Median Sale Price / October's Median Sale Price = Percentage Change
4. How to calculate Transaction Price Breakdown
- Use the data from Median Sale Price
- Based on the data, it looks like the 4 price ranges are $500,000 and below; $500,001-$650,000; $650,001-$900,000; and Above $900,000
- With the price ranges set, count the number of transactions that fall into each range
- $500,000 and below: 3
- $500,001-$650,000: 6
- $650,001-$900,000: 4
- $900,000 and above: 16
5. How to calculate Average Days on Market
- On the listing page in Zillow, scroll down to and expand the Price/Tax History section
- Subtract "Listed" Event Date from "Sold" Event Date" to determine Days on Market
- Use this formula: "Sold" Event Date" - "Listed" Event Date = Days on Market
- Do this for each of the listings
- Days on Market for each listing: 24, 16, 43, 32, 15, 72, 16, 16, 8, 33, 42, 15, 26, 28, 55, 70, 44, 54, 62, 31, 13, 28, 16, 28, 19, 38, 21, 36, 49
- Add all of the listing's Days on Market and divide it by Total Transactions
- Use this formula: Total Days on Market / Total Transactions = Average Days on Market
- 950 Days on Market / 29 Total Transactions = Average of 33 Days on Market
6. How to determine Highest and Lowest Price Sale
- Using the same data from Median Sale Price, take note of the Highest Price and the Lowest Price
- For my example, the highest is $5.85M and the lowest is $2,995
7. How to determine Largest and Smallest Home on Market
- Using the same filter from Total Transaction, sort by Square Feet
- Take note of the Largest and Smallest sqft
- For my example, the largest is 15,000 sqft and the smallest is 518 sqft
8. How to determine Available Homes
- Using the same filter from Total Transactions, modify the filter button and adjust Days on Zillow to "Any"
- Change the Sold option to For Sale
- In the right-hand column, you'll notice the "202 results"
- Available Homes = 202 for November
Now that you've calculated and determined the information needed to fill out your Monthly Real Estate Market Report, open the PowerPoint document and start making edits. The PowerPoint document includes developing editing instructions, and an example using the data from this blog article.
Download the Complimentary Monthly Real Estate Market Report template >>>
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