Understanding Terms and Definitions of Real Estate Statistics for Phoenix Arizoma
Before you read an article about real estate market statistics, you will get a fuller picture if you understand the terms being used.
- Days on the Market (DOM) - When a home is listed, the DOM will begin at zero and changes dailiy. There are two terms in the ARMLS nomenclature: ADOM = Agent Days on Market and CDOM = Cumulative Days on Market. ADOM refers to the number of days the current Agent has had the property listed. CDOM refers to the number of days the current listing has been on the market, regardless of whether the agent changed. The DOM ticker does not stop while the "Under Contract Accepting Backup Offers" status. If a listing has a new agent, the ADOM will reset to zero but the CDOM counter will not clear. A property must be off the market for 90 days from a list expiration or cancellation to clear the CDOM ticker.
- Median Price - Median is often confused with average. The word median is the numerical value separating the higher half of a data sample with the lower half of a data sample. Therefore, when we read "median price", it refers to the numerical value in the middle of the sold prices. So if there are 50 homes sold in a one month period, the median price would be the price in the middle, with 25 prices before and 25 prices following. This gives you a different picture than if you are looking at the average price.
- Average Price - The average price is calculated by adding all the sales for a specific time period together and then dividing by the number of homes sold. If there are three homes sold at $400,000, $800,000 and $1,000,000, the average price would be $733,333.33 (2,200,000 divided by 3).