According to Altos Charts the Market Action Index (MAI) illustrates the balance between supply and demand using a statistical function of the current rate of sale versus current inventory. Residential house prices are a function of supply and demand, and market conditions can be characterized by analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyer’s Market zone for a long period, prices are likely in for a downward correction.
A Market Action Index (MAI) value greater than 30 typically indicates a “Seller’s Market” because demand is high enough to quickly gobble up available supply. A hot market will typically cause prices to rise. MAI values below 30 indicate a “Buyer’s Market” where the inventory of already-listed homes is sufficient to last several months at the current rate of sales.
A cold market will typically cause prices to fall. On the real time charts that we have displayed on this site we have selected the four zipcodes in Atlanta that cover the Buckhead market.
In addition we have isolated the top quartile to track. The top quartile is the top 25% of sales in each area.
We are also providing charts in real time for Vinings, East Cobb and Roswell with the 7 day average and the 90 day average both illustrated. For a detailed report that shows price per square foot, days on market, average selling price and current inventory levels contact us and we will send you an executive summary. In addition we compile a ten page extensive report for each of the ten zipcodes in those areas. Contact us for you copy. Download this sample of the Vinings 30339 Market Update to view a report.
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About the author: Cheri Riley is the Founding Partner of the Cheri Riley Group at Atlanta Fine Homes Sotheby's International Realty. She has overseen almost two billion dollars in residential real estate sales either directly or under her management. Her passion is uniting extraordinary properties with extraordinary people.
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