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Palos Verdes Real Estate | Palos Verdes Homes for Sale | Palos Verdes Homes | Palos Verdes
Hermosa, Manhattan, Redondo Beach, Palos Verdes, Torrance
Thank you for coming to this portion of my website. The market reports you see available for free provide you a good glimpse as to the status of the real estate market in the various sections of the South Bay. Keep me in mind that you get more benefits by signing up for the detailed Market Report. On each of the city pages below, you will see 5 good reasons to sign up. Please scroll down to view the city list
... and what is the "Market Action Index"? scroll down
Please select the city of your choice: (if you don't see your city listed, no problem, scroll down to complete the request form to get your own customized proprietary real estate market trend report)
MARKET ACTION INDEX
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.
Maybe 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 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 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.
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For more information on homes for sale in Palos Verdes, Palos Verdes real estate, palos verdes homes for sale, palos verdes foreclosures, palos verdes real estate market information as well as quality information on homes for sale in Rancho Palos Verdes, Palos Verdes Estates homes for sale, Manhattan Beach real estate, Hermosa Beach real estate, Redondo Beach real estate, Torrance real estate, Palos Verdes real estate trends, and real estate trends throughout the Beach Cities, Palos Verdes Estates and the South Bay, visit www.homeispalosverdes.com
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