Metrics, Formulas, Definitions

Number of Sales All available closed sales at the time of report preparation to occur in a specific market during the reporting period. This figure is not updated in subsequent quarters.

Number of New Leases (formerly Number of New Rentals) All available closed rentals at the time of report preparation to occur in a specific market during the reporting period. It does not include lease renewals. The word “new” is not an identifier for “new development,” “new conversion” or “new construction.” This figure is not updated in subsequent quarters.

Average Price Per Square Foot The sum of all apartment sales prices in a specific reporting period and market divided by the total square footage of all sales in that same period and market.

Average Rental Price Per Square Foot The sum of all apartment rental prices in a specific reporting period and market divided by the total square footage of all rentals in that same period and market.

Average Sales Price The sum of all apartment sales prices in a specific reporting period and market divided by the number of sales in that same market and reporting period.

Average Rental Price The sum of all apartment sales prices in a specific reporting period and market divided by the number of sales in that same market and reporting period.

Median Sales Price This is the number that is the middle point of all sales prices in a data set. If the data set has an even number of data points, the average of the two middle numbers of the set is the median sales price.

Median Rental Price This is the number that is the middle point of all rental prices in a data set. If the data set has an even number of data points, the average of the two middle numbers of the set is the median rental price.

Total Listing Inventory Inventory is collected through local MLS services that were available and supplemented when needed through aggregators such as Streeteasy, Realtor.com, Zillow, and Trulia. Listing inventory presented is comprised of active supply, not shadow supply.  

Active Inventory Listings that are currently available for sale and visible to the public.

Shadow Inventory These are potential future listings of new development product that is not public and sits behind active inventory but is not formally offered for sale yet.

New Listing Inventory A listing that enters the market in a specific month or period being analyzed. It is not an accumulated total from a prior month like total listing inventory.

Quintiles All sales in the quarter are sorted by price. The total number of sales is then divided into five equal groups. The median sales price of each fifth, or quintile results.

Days on Market The average number of days from the last change in list price to the contract date. The original list date was used with the reports for Long Island Sales and Manhattan, Brooklyn & Queens Rentals due to availability and quality of data.  But conceptually and for the balance of our reports, the reliance of the last list price and date measures the moment when that listing entered the market on a competitive basis.  An original list price is often a random number that the seller wants or may be inconsistent with current market conditions.

Listing Discount The average percentage difference between the last list price and the contract price. In some cases, the original list price was used due to the availability and quality of data. But conceptually and for the balance of our reports, the reliance of the last list price and date measures the moment when that listing entered the market on a competitive basis.  An original list price is often a random number that the seller wants or may be inconsistent with current market conditions.  A $1,000,000 last list price with a $950,000 sales price indicates a 5% listing discount: ($1,000,000 – $950,000) / $1,000,000 = 5%.

Months of Supply The number of months it would take for all active inventory to be sold at the current rate of sales. It is calculated by taking the listing inventory and deducting the monthly number of sales. An increase in the number of months to absorb current housing stock indicates a weakening market. The number of sales for the quarter is divided by three to convert to a monthly average. For example, a 3,000 quarterly number of sales and a listing inventory of 6,000 would yield 6 months of supply: (6,000)/(3,000/3).

Closed Sales Data collected and presented on this site and in our quarterly market reports for sales are closed sales, whether or not they have been recorded and available in the public record.

Contract Sales, aka Pending Sales, “Under contract” These are sales that have not closed and may not close. These sales are used in our new signed contract reports.

New Signed Contract Sales These are sales that have not closed and occurred within the specific period, usually a specific month.

Arm’s Length Transaction This a sale that was openly vetted to the market and not to related parties or a mechanical transfer.

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