Interpreting Altos Dynamic Market Reports
Current market conditions are updated automatically across California.
Designed for clarity, context, and ongoing reference. Altos Research provides the underlying market data referenced in these reports.
Introduction
Every chart and indicator on these Altos Research reports updates automatically. Whether viewed today or revisited months later, the information reflects current market conditions at the time you open it.
This page is designed to help you interpret the report with confidence by explaining how key indicators work together and what they typically signal when read in context.
Market Narratives by County
Orange County: Full city coverage
Riverside County: Selected cities adjoining Orange County (in preparation)
Los Angeles County: Selected cities adjoining Orange County (in preparation)
If you would like help interpreting a specific trend, clarification is always available.
How to Read Your Market Report
Real estate data is most useful when understood in context rather than viewed as isolated numbers. The sections below explain how each indicator contributes to the broader market picture.
1. Market Action Index (MAI): Market Pressure
The Market Action Index combines supply, demand, pricing behavior, and market velocity into a single indicator.
How to read it:
30 and above: Seller’s market
Below 30: Buyer’s market
Rapid movement up or down: Momentum shift
Why it matters:
MAI reflects current market pressure rather than lagging indicators.
2. Inventory: Homes Available for Sale
Inventory levels provide early insight into competition and pricing leverage.
Declining inventory: Increased competition and upward pressure
Rising inventory: Greater buyer leverage and longer timelines
Focus on the direction of the trend, not a single number.
3. Median List Price: Seller Confidence
The median list price reflects how sellers position properties.
Rising: Stronger seller confidence
Stable: Balanced expectations
Softening: Emerging buyer leverage
Price movement often signals motivation before transactions close.
4. Days on Market (DOM): Market Velocity
Days on Market measures how quickly properties are selling.
Falling DOM: Increased urgency
Rising DOM: Slower movement and more negotiation flexibility
DOM reflects market tempo rather than value alone.
5. Price Per Square Foot (PPSF): Value Comparison
Price per square foot allows comparisons across properties of different sizes.
Key insight: Direction matters more than precision.
Rising PPSF: Upward pricing pressure
Falling PPSF: Softening conditions
6. Price Reductions: Market Adjustment
Price reductions reveal how sellers respond to demand.
Increasing reductions: Recalibration and possible softening
Decreasing reductions: Firmer pricing and stronger demand
Reductions often indicate the next phase of pricing behavior.
7. Supply and Demand Balance: The Broader Picture
No single metric tells the full story. Review these together:
Inventory trends
MAI position
Pricing movement
Price reductions
Days on Market
Together, they provide a clearer view of current conditions and potential direction.
8. Short-Term vs. Long-Term Trends
7-day trends: Immediate shifts
90-day trends: Broader direction
When short-term trends change ahead of longer-term trends, it may signal an early transition.
9. Seasonality: Essential Context
Local markets follow predictable seasonal patterns.
Spring: Increased buyer activity
Summer: Peak movement
Fall: Moderated pace
Winter: Slower activity, with localized exceptions
Seasonality helps prevent misinterpretation of normal fluctuations.
10. Using These Reports for Different Goals
If selling:
Use MAI, DOM, and pricing trends to assess timing and positioning.
If buying:
Watch inventory, price reductions, and DOM for opportunity.
If investing:
Use PPSF, MAI, and inventory to identify value pockets.
If monitoring:
Bookmark your city page. The data updates automatically.
Final Note
If anything feels unclear, clarification is always available.
These reports are designed to inform decisions, not create urgency or confusion.