Methodology, In Full

Three gauges.
Every formula.
Nothing hidden.

Most housing scores hand you one number and hope you trust it. We do the opposite. Every county is read across three gauges, each answering a different question, and this page shows you exactly how each one is built, down to the arithmetic. If you can read a nutrition label, you can read this. Worked start to finish for Erie and Niagara County, using the current published dataset.

Public data in Same math every county Recomputed monthly Frozen on publish
Start here

The one rule that governs everything

A single housing number is almost always dishonest, because it tries to answer two different questions at once. “How competitive is this market right now?” and “Is this market heating up or cooling down?” are not the same question, and their answers can point in opposite directions. A market can be intensely competitive today and, at the same time, a little calmer than it was six months ago. Blend those into one score and you get a middling figure that misrepresents both.

The rule

Absolute answers “what is it?” Relative answers “what changed?” Two of our gauges are absolute: they use fixed lines that are identical for every county, so a 70 in Erie means the same thing as a 70 in Niagara. One gauge is relative: it measures a county only against its own recent history. We never let one number pretend to answer both questions.

The inputs

The data, and where it comes from

Everything starts with six public housing figures published monthly by the Redfin Data Center for each county. Nothing here is scraped, guessed, or private. The six figures are the raw material for all three gauges:

The six monthly inputs (Redfin, county level)
FigureWhat it measuresHotter when
Sale to list ratioFinal price versus asking priceHigher
Months of supplyHow long to sell every active listingLower
Median days on marketHow fast a typical home sellsLower
Share sold above listHow often homes clear over askingHigher
Off market in two weeksShare of listings gone within 14 daysHigher
Inventory, year over yearDirection of supply versus a year agoLower

Three of these run “backwards”: more supply, slower sales, and growing inventory all mean a cooler market, not a hotter one. The math accounts for that direction explicitly, as shown below. Each monthly reading is frozen when it publishes. Redfin revises its history over time, but a number we publish for a given month stays as published and is not quietly rewritten later.

Gauge 02
1Market TypeAbsolute, fixed lines
In plain English

Who has the power in this market, buyers or sellers? This is the classic buyer's market versus seller's market call. It is mostly a question of supply: when there are very few homes for sale relative to demand, sellers hold the leverage.

Inputs and weights

InputWeightWhy
Months of supply50%The textbook definition of market balance. It is the spine.
Sale to list ratio30%Leverage made visible in the final price.
Share sold above list20%How often bidding pushes a sale over asking.

How each input becomes a 0 to 100 score

We place each raw figure on a fixed 0 to 100 scale using anchor points. If a value lands between two anchors, we slide proportionally between them. This is called linear interpolation, and it is the same idea as reading a value off a ruler. These anchor lines never move and are identical for every county.

Anchor points, Market Type
Months of supplyscoreSale to listscoreAbove listscore
0.510096%1010%15
1.09098%3525%35
2.075100%5540%55
3.055103%8055%78
4.040106%9570%92
6.00
Market Type = (supply score × 0.50) + (sale-to-list score × 0.30) + (above-list score × 0.20)

The verdict bands

70 and up
Strong Seller's Market
57 to 69
Seller's Market
45 to 56
Balanced
32 to 44
Buyer's Market
below 32
Strong Buyer's Market

Worked, both counties

InputErie rawscoreweightNiagara rawscore
Months of supply2.27150%3.055
Sale to list106.9%9530%103.6%83
Share above list68.2%9020%59.3%82
Market Type8269

Erie and Niagara are calculated from the current published dataset. This gauge is the fixed-threshold leverage read; it stays comparable across counties when next month is loaded.

Gauge 03
2Speed & CompetitionAbsolute, fixed lines
In plain English

Market Type tells you who has the leverage. This tells you how hard that leverage is being used right now: how fast homes sell, and how much buyers fight over each one.

Inputs and weights

InputWeightRole
Median days on market35%Speed. Fewer days is a faster market.
Share sold above list25%Competition. Direct measure of bidding.
Off market in two weeks20%Urgency. Listings gone inside 14 days.
Sale to list ratio20%Competition confirmed in the final price.

Anchor points

Anchor points, Speed & Competition
Days on mktscoreAbove listscoreOff in 2wkscoreSale/listscore
510015%2520%2098%28
157835%5040%45100%50
305250%6555%62102%66
453268%8570%80105%88
601880%9585%95108%98
900
Speed & Competition = (days score × 0.35) + (above-list score × 0.25) + (off-market score × 0.20) + (sale-to-list score × 0.20)

The verdict bands

80 and up
White-Hot
62 to 79
Fast & Competitive
45 to 61
Steady
30 to 44
Cooling
below 30
Slow

Worked, both counties

InputErie rawscoreweightNiagara rawscore
Days on market108935%1480
Share above list68.2%8525%59.3%75
Off market in 2wk66.2%7520%62.6%71
Sale to list106.9%9420%103.6%78
Speed & Competition8677

Erie and Niagara are calculated from the current published dataset. This gauge moves more with the season because pace and competition change faster than the underlying leverage backdrop.

Gauge 04
3DirectionRelative, own history
In plain English

Is this market heating up or cooling down, compared to how it has behaved lately? This is the only gauge measured against a moving target, on purpose. Momentum has no meaning without a “compared to what.” Here, 50 means a typical recent month, above 50 is hotter than the county's own normal, below 50 is cooler.

Inputs and weights

InputWeightDirection flipped?
Sale to list ratio25%No
Months of supply20%Yes
Median days on market20%Yes
Share sold above list15%No
Off market in two weeks10%No
Inventory, year over year10%Yes

The three steps

Step 1, smooth. One month of data is noisy, so we average the latest three months of each input. That is the trailing three month average.

Step 2, compare to the county's own recent normal. We ask how unusual this month is for this county by measuring it against the last 24 months of that same smoothed figure. The tool for this is a z-score: how many standard deviations above or below its own two year average the current value sits. For the three “backwards” inputs (supply, days on market, inventory growth) we flip the sign, because for those a high value is a cooling signal.

Step 3, put it on the 0 to 100 scale, then blend. Each z-score becomes a sub-score, then we combine them with the weights above.

# step 1
smoothed = average of the last 3 monthly values

# step 2 (flip sign for supply, days on market, inventory)
z = (smoothed 24-month average) ÷ 24-month standard deviation

# step 3
sub-score = 50 + (15 × z), then capped to stay within 0 to 100
Direction = weighted sum of the six sub-scores
One input, worked all the way through

For Direction, each input is first smoothed using a trailing three-month average, compared with that county's own trailing 24-month normal, converted into a z-score, and then placed on a 0 to 100 scale. Supply, days on market, and inventory growth are flipped because higher values are cooling signals. That is why a county can still be a seller's market while Direction shows cooling versus its own recent history.

The result, both counties

Sub-scoreErieweightNiagara
Sale to list52.125%55.9
Months of supply11.820%7.6
Days on market58.620%56.3
Share above list56.315%53.7
Off market in 2wk71.210%73.2
Inventory YoY25.510%51.3
Direction4547

Erie and Niagara are calculated from the current published dataset. The verdict combines position and movement: below 42 is Below Normal, 42 to 57 is Near Normal, 58 and up is Above Normal; a month-over-month move beyond 1.5 points is labeled Rising or Falling.

The trap this gauge avoids

Because every month is judged against its own recent history, Direction is not a thermometer. Erie has better raw numbers than Niagara yet a slightly lower Direction score, because Erie has cooled a little more from its own recent peak. That is not a contradiction. Read Direction next to the two absolute gauges, never alone.

Gauge 04, continued

The Direction drivers

In plain English

To explain why Direction landed where it did, we group the six sub-scores into three plain-language drivers. They are not new math. They are the same six numbers, paired up, and the three of them add back up to the Direction score exactly.

Market Speed = (days sub × 20 + off-market sub × 10) ÷ 30
Over-Ask Pressure = (sale-to-list sub × 25 + above-list sub × 15) ÷ 40
Supply Tightness = (supply sub × 20 + inventory sub × 10) ÷ 30
DriverErie scoreErie pointsNiagara scoreNiagara points
Market Speed6318.86218.6
Over-Ask Pressure5421.55522.0
Supply Tightness164.9226.7
Points sum to Direction45.247.3

The “score” column is on the same 50-is-normal scale as everything else. The “points” column is each driver's share of the headline number, and the three shares add up to the Direction score. The strongest and weakest driver language below updates from the current dataset.

A design decision, stated out loud

One formula, every county

Erie and Niagara use the exact same inputs, the exact same weights, and the exact same threshold lines. We do not tune the formula per county. Tuning weights to make a particular market look a particular way would mean fitting the model to the answer we wanted, which is the opposite of credible. Same formula, different readings, is precisely what lets you set an Erie number beside a Niagara number and trust the comparison. When two counties differ, it is because the markets differ, not because we moved the goalposts. Every number on every report is produced by a single shared calculation engine reading a single shared dataset, so a report and this page can never disagree.

Read all three, never one

Erie vs Niagara

Absolute gauges tell you where each market is and are comparable across counties. Direction tells you which way each is moving and is each county against itself. Here is the full picture.

Gauge / question
Erie
Niagara
Say it in one breath

The current Erie and Niagara comparison loads from the shared county dataset.

The honest part

What this is, and what it is not

What it is
  • A read of market leverage, speed, and momentum, from public data
  • The same formula and thresholds for every county, so comparisons are fair
  • Recomputed each month and frozen when published
What it is not
  • Not a price forecast or a prediction of what happens next
  • Not an affordability measure. A competitive market is not a cheap or expensive one
  • Not financial, mortgage, legal, tax, appraisal, or investment advice
Read all three, never one. Market Type and Speed & Competition are absolute, on fixed thresholds, and comparable across counties. Direction is relative to each county's own trailing 24 months, so a Direction below 50 means cooler than that county's recent norm, not a cold market.  Sample size. Smaller counties can carry more single-month sampling noise, so trend context matters.  Data. Figures reflect Redfin's calculations from MLS and public records and may be revised by the source; our published monthly readings are frozen and not rewritten.  Not advice. This is editorial market education. It is not a commitment to lend, a loan estimate, a rate quote, or personalized advice. Buyers, sellers, agents, and borrowers should verify property, rate, payment, program, eligibility, and market details with qualified professionals before making decisions.
Source: Redfin Data Center, county level monthly data through the current published dataset. Market Type and Speed & Competition are absolute gauges on fixed thresholds. Direction is a proprietary momentum reading relative to a county's own history. Every figure on this page is produced by one shared calculation engine from one shared dataset, recomputed monthly. Editorial market education, not a prediction, guarantee, or rate quote. Published by Troy Pulli, NMLS #2739716.