Want to know the secret to predicting where the real estate market is headed? Southwest MLS Director Michelle Smith tackled this very question in her August Stat That Matters video by breaking down the difference between leading and lagging statistics.

What Are Lagging Stats?

Lagging indicators tell the story of what has already happened in the market. Think of appraisal values, Zillow Zestimates, and those bold real estate headlines on the news—they’re all based on numbers from the past.

Classic examples include:

• Closed sales
• Days on market
• List-to-sale ratios
• Median or average prices

You’ll find these every month on GAAR’s Green Sheet. They’re helpful benchmarks, but they represent outcomes that have already occurred.

What Are Leading Stats?

Leading indicators, on the other hand, provide a snapshot of what’s happening right now and a glimpse of where the market is headed.

These include:

• New listings
• Pending sales
• Showing activity
• Price reductions
• Months’ supply of inventory

Because they reflect current activity, leading stats are especially powerful for brokers advising clients who crave real-time insight.

Why It Matters for Brokers

Michelle challenges brokers to take a fresh approach the next time they run a CMA. Instead of stopping at closed comps, add in:

• Active and pending days on market
• Median list prices
• Current inventory trends

This layering gives clients more than a history lesson—it paints a forward-looking picture of the market.

Stay Ahead of the Curve

Providing clients with both lagging and leading indicators is like sprinkling a little magic dust on your analysis. It positions you as a broker who isn’t just informed but ahead of the curve, offering data-driven insights that help clients make smarter decisions.

That’s Michelle Smith’s Stat That Matters for August. Stay tuned for next month’s insight!

To view the latest Market Statistics, visit https://www.gaar.com/market-statistics