How to Read Your Market Report

The Altos Market Report differs from many traditional real estate reports in that it focuses on current market activity rather than only on past sales.

View the complete guide here:

The Official Guide on How to Interpret an Altos Market Report

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The fastest way to understand your report:

Start with the Market Action Index. It provides a snapshot of whether buyers or sellers currently have the advantage. Then review inventory, pricing trends, and days on market to see what’s driving the market.

What Matters Most?

If you’re short on time, focus on these three indicators:

✓ Market Action Index
✓ Inventory Levels
✓ Days on Market

Together, these often provide the clearest snapshot of whether the market is strengthening, weakening, or remaining balanced.

Unlike reports that focus primarily on past sales activity, Altos helps show what’s happening in the market now.

1. Start With the Market Action Index (MAI)

The Market Action Index (MAI) measures the balance between supply and demand.

• Above 30 = Seller’s Market
• Below 30 = Buyer’s Market
• Rising = Demand increasing relative to supply
• Falling = Demand weakening relative to supply

2. Check Inventory

Inventory tells you how many homes are competing for buyers.

• Lower Inventory = More competition among buyers

• Higher Inventory = More competition among sellers

3. Review Median List Price

This shows how sellers are positioning their properties.

• Rising Prices = Stronger seller confidence

• Stable Prices = Balanced market

• Falling Prices = Increasing buyer leverage

4. Look at Days on Market (DOM)

This tells you how quickly homes are selling.

• Lower DOM = Faster market

• Higher DOM = Slower market

5. Watch Price Reductions

Price reductions often provide an early signal of changing conditions.

• More Reductions = Buyers gaining leverage

• Fewer Reductions = Sellers maintaining leverage

6. Compare Multiple Indicators

Avoid making decisions from a single chart.

The clearest picture usually comes from reviewing:

✓ Market Action Index

✓ Inventory

✓ Pricing Trends

✓ Days on Market

✓ Price Reductions

7. Consider Your Goal

If you’re selling, focus on MAI, inventory, and pricing trends.

If you’re buying, focus on inventory, Days on Market, and price reductions.

If you’re evaluating an inherited property, review all of the above to better understand your available options.

8. Think About Your Family’s Situation

Market data is only one piece of the puzzle.

Remember: Data Requires Context

Market data can be helpful, but numbers alone don’t tell the whole story.

Inventory, pricing trends, days on market, and the Market Action Index are most valuable when interpreted within the context of your goals, timeline, and circumstances.

Data without context can be misleading. Understanding what the numbers mean and why they matter is what helps people make informed decisions.

Questions about your neighborhood, home value, or local market conditions?

Simply reply to any report email, and I’ll be happy to help you understand what the data means and how it may affect your specific situation.

The goal isn’t just to review market data; it’s to understand what that information may mean for your situation and your options moving forward.