Inside Loudoun Buyer Intensity

Buyer intensity is an indicator of buyers market, sellers market or a balanced market.
There are 1 articles written on this subject. The most recent 10 are listed here:

  • Loudoun County Buyer Intensity Index
    		•

    You will find a complete Index of Articles by Category and by Month in the Archives.


    January 30, 2006

    Loudoun County Buyer Intensity Index

    by Merv on Monday, January 30, 2006 at 06:28 AM | [0] Comments [0] Blog links
    The Loudoun Buyer Intensity Index (Loudoun BII) is simply an indicator of buyer intensity at any point in time (monthly). Positive index values means more property is being sold than there are active listings. Negative index values means fewer properties are being sold when compared to total active listings. Values close to zero indicates a relatively balanced market; number sold is close to number active. An out of balance condition exists when the difference between sold and active is greater than 25% of the number of actives or when the difference is less than 20% of the number of total actives. Hover on data points to view values.
    RED Columns: HOT - Strong Seller Market, buyers need to be aggressive.
    BLUE Columns: COLD - Strong Buyer Market, buyers can be selective and negotiate.
    Gray Columns: Balanced Market, buyers and sellers are on equal footing.


    The Loudoun BII is an adaptation of Nate Summer's Marin Market HEAT Index™. He describes it as

    "an indicator of the intensity of buyer competition for listed residential properties at the current time, a snapshot of conditions. Higher numbers indicate more buyer competition for each home on the market; lower numbers mean less intense, lower levels of buyer competition for each listed home. This measure includes single family homes and condominiums (other types of real estate are excluded)."

    Our modification gives an index value of positive and negative numbers that makes it visually more intuitive. Note the following:
    • The initial Loudoun BII includes all property types (detached, townhouses, condos, and new construction).
    • New construction data is historically unreliable as entries into the MLS are often made after settlement (never appear as active). Future indexes will exclude these.
    • The Loudoun BII thresholds are +0.25 (red columns) and -0.2 (green columns) respectively. A balanced market is indicated by the gray columns.
    • We include the two lines on the chart above to illustrate the relationship of SOLDS to ACTIVES.
    • The Marin Market HEAT Index is a trade mark of Nate Summer.

    Comment on Loudoun County Buyer Intensity Index. Follow this article is off. More articles like this one filed in: Loudoun Buyer Intensity

    Choice3 Realty Group | Licensed in Virginia
    RE/MAX Renaissance | Leesburg, Virginia | 703-771-2345
    Each office independently owned and operated.
    © 2004-2007 Choice3 Realty. All rights reserved