A database of new home and subdivision information is compiled from recorded plats and planning commission activity. A MarketGraphics® field auditor then drives the streets of active new home subdivisions to determine the inventory of lots and homes. Data collection and field audits are conducted every four months. The raw data is then processed, analyzed and compiled into a final report. When starting a new market, the field auditor will gather approximately 10 years of historical recorded plats.
MarketGraphics’® philosophy is to track the market conditions to determine if the industry is under-building or over-building in a given area and price-point. MarketGraphics® tracks the start and closing rate by subdivision, MG Area, county, market area and, in some markets, product information.
The demand for houses and corresponding demand for lots is determined through an analytical process involving historical and current market trends and conditions. The historical record of each four month audit provides a basis for forecasting demand. Additional market factors such as over-building, under-building, permit trends, economic conditions, the existing-home market and the apartment market are also factored into the demand forecast.