What is a “Moving Average”?
A moving average is simply the average value of a data series over a period of time, where the values included “move” with the data series. For example, a 12-month centered moving average for an April observation is calculated as the average of the monthly values from the prior October (6 months before) through the […]
What is “Months’ Supply”?
Months’ Supply is a measure of the balance between supply and demand in the market. It is calculated by dividing the number of active listings on the market at the end of the month by the number of sales over the course of the month. For example, suppose that 200 homes sold in a given […]
How do you calculate “Retail Employment”?
The Current Employment Statistics program of the U.S. Bureau of Labor Statistics provides monthly estimates of employment by sector for most of the major markets across the state; sectors are defined using the North American Industrial Classification System (NAICS). The Center for Real Estate uses these sector definitions to segment the employment figures by property […]
How is the Unemployment Rate calculated?
The unemployment rate is estimated using a survey of households called the Current Population Survey. In this survey, people are asked if they have a job, and if not, whether they are actively looking for work. Those who have a job are classified as employed, while those do not have a job but are actively […]
What is Seasonal Adjustment?
Many economic data series exhibit strong seasonal effects. For instance, home sales activity generally picks up in the spring and summer, and is slower in the fall and winter. These seasonal patterns can make it hard to track underlying trends in the data. For example, if home sales decline in September, is that just a […]
How do you calculate “Office Employment”?
The Current Employment Statistics program of the U.S. Bureau of Labor Statistics provides monthly estimates of employment by sector for most of the major markets across the state; sectors are defined using the North American Industrial Classification System (NAICS). The Center for Real Estate uses these sector definitions to segment the employment figures by property […]
What are Metropolitan Statistical Areas (MSAs)?
Metropolitan Statistical Areas (MSAs) are defined as urban areas with a population of 50,000 or more, along with all counties with substantial social and economic ties to that area. Currently there are five MSAs in Kansas: Kansas City (MO/KS), Lawrence, Manhattan, Topeka and Wichita. Micropolitan Areas are defined as urban areas with a population of […]
What is the difference between “Average” and “Median” figures?
Average and median are both measures of “central tendency,” in that they are intended to provide some indication of a typical or middle value of a set of data. The average is calculated by adding up all of the individual values and dividing this total by the number of observations. The median is calculated by […]
How do you calculate “Industrial Employment”?
The Current Employment Statistics program of the U.S. Bureau of Labor Statistics provides monthly estimates of employment by sector for most of the major markets across the state; sectors are defined using the North American Industrial Classification System (NAICS). The Center for Real Estate uses these sector definitions to segment the employment figures by property […]
How does a Home Price Index (HPI) compare with the Median Sale Price?
The median sale price measures the “middle” price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less. While this is a good measure of the typical sale price, it is not very useful for measuring home price appreciation because it is affected by the […]
