There is no “good” or “bad” market. It is what it is. People always need to buy, sell, and lease homes in every market. Rather than analyzing this month’s numbers in isolation, I’ll explain how you can view and interpret the data for yourself.
Unless a global crisis or macroeconomic shift interferes, the real estate market follows regular seasonal cycles. These are largely influenced by the annual school calendar: buyer activity typically increases starting around spring break (March) and remains elevated through the summer until the new school year begins (August). There is also often a minor uptick in late December through January driven by end-of-year moves, job relocations, or mid-year schedule changes.
Next, let’s understand how the Multiple Listing Service (MLS) calculates the “median.” The median is the exact middle value of a dataset, where half of the numbers fall above it and half below. Using the median prevents extreme outliers—like ultra-luxury sales or foreclosures—from skewing the market picture the way an average would.
• Median Listing Price is the middle asking price for active properties in a specific market (city, county, etc.). The list price represents what sellers are asking for their properties, which may or may not reflect fair market value. Sellers aim to maximize their equity; if properties in a higher price tier aren't moving, sellers may adjust prices or temporarily withdraw luxury listings until demand improves. Changes in inventory supply and seller pricing expectations directly drive the Median Listing Price up or down.
• Median Sold Price is the exact middle sale price among all closed transactions in the dataset for that period. It is not a direct "comparable" for an individual home because it represents an entire city or region. Because real estate transactions typically take 30 to 45 days to close, this metric reflects market agreements struck during the previous month, showing the overall direction home values are moving relative to listing prices.
• Median % of Original Price is the percentage ratio of the final closed sales price divided by the original listing price ($Close Price \div Original List Price$). It indicates how closely final sale prices align with sellers' initial expectations. If this metric drops below 90%, it signals a significant gap between initial list prices and current buyer demand. Additionally, this metric captures the total price movement from the property's original list price through any price reductions, whereas Percent of List Price Received measures only the gap between the final/current list price and the closed price.
• Total Active represents all active residential listings on the MLS during the report period across all property types (single-family, condos, townhomes, land/ranches) and home conditions (resale and new construction). This metric reflects only MLS-listed inventory; many builders market only model or sample homes on the MLS while selling remaining inventory off-MLS at volume.
• Closed Sales represents the exact count of completed transactions finalized through the MLS during the period. Tracking closed sales volume reveals market momentum—when closed transaction volume changes significantly, it impacts inventory absorption rates and pricing metrics across the board.
• Median Days on Market (DOM) measures the middle number of days from initial listing to an Executed contract (not Closed), providing sellers a benchmark for how quickly appropriately priced properties are selling in the current market.
• Median Price per Square Foot Sold is the middle value of the calculated rate ($Sold Price \div Livable Square Feet$) across all closed sales. In rural areas, this number can be higher if purchase prices include significant land/acreage value factored into the home's square footage alone. However, it remains a helpful regional baseline when comparing similar property types across neighboring areas.
• Inventory Months (Months of Supply) measures how many months it would take to sell all current active listings at the current monthly pace of sales. It indicates negotiating leverage:
o Less than 4 months: Seller’s market (inventory is low relative to demand)
o 4 to 6 months: Balanced market
o More than 6 months: Buyer’s market (inventory exceeds current demand)
• YOY Percentage (Year-Over-Year) measures the percentage change of a given metric compared to the exact same period from the previous year. When applied to Months of Inventory, a positive YOY increase indicates that supply is growing relative to sales pace (shifting toward a buyer's market). Conversely, a negative YOY change indicates supply is tightening relative to sales pace (shifting toward a seller's market).
I've Got Your Six!
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212 (call or text)
DFWmark@kw.com
DFWmark.com
