About the Index

What is the MHI?

The Market Heat Index^®, with one single number, gives you a clear, accurate and current reflection of activity and competition in your real estate market.

Why should I care about activity level?

The number of competing buyers there are for any given property will have a huge impact on the price and/or the terms of a sale. Competition for a property can mean a difference of tens or hundreds of thousands of dollars. For example, imagine a house goes on the market and immediately there are ten buyers making offers--the price is driven up. Now imagine a house that has been on the market for six months with no offers at all—the price gets lowered so that it will be more attractive.

If you know what the activity level is for your area and price range, you are armed with the information you most need. As a seller it allows you to price your home to sell, and sell now; as a buyer it gives you an advantage in effectively setting your offer price. And particularly if the Index records either a sudden increase or drop, you will possess critical and valuable information ahead of your market competition.

What’s different about the MHI?

The MHI reflects daily activity by buyers and sellers in the real estate market. It presents a snapshot of activity in the moment, in the form of a single, compressed, and clear Index number. Employing up-to-date data, it is a CURRENT view of buyer and seller action. Public records, which are used by most other data sites, reflect PAST activity—usually months or more in the past.

Where does the information come from?

The information is derived from local Multiple Listing Services. The Market Heat Index® is designed to be a “leading indicator” of market shifts and changes. It does not seek comprehensive statistical coverage of every transaction. MLS data in the majority of markets in the U.S. and Canada represents most activity in these markets, and constitutes, at a minimum, an excellent sample of market activity. Who developed it?

The Market Heat Index^® was originated in 2002 by long-time real estate broker, Nate Sumner, of Marin County, California. Nate used his real estate expertise and academic analytic skills (doctorate from Brown University) to develop the Index in answer to his clients’ perennial question, “How hot is the market now?”

How do I know it’s accurate?

Since 2002, when the Market Heat Index^® was first launched in Marin County, the Index has reflected market shifts accurately and in real-time. The Index’s detection of significant market shifts routinely predated (often by many weeks or months) the first notice taken in the popular press. The MHI has been an immensely valuable tool for those making market decisions as buyers or sellers.