Methodology

Local Equity Report provides home equity analytics built on a multi-source data pipeline. This page details how we collect, process, and present residential real estate data across all 50 states.

Data Collection Process

Our analytics platform aggregates data from multiple authoritative sources to build the most complete picture of local home equity conditions:

• Listing aggregator data — Active listings, pending sales, and closed transactions sourced from publicly available listing platforms (including Zillow and Redfin) provide market activity data.
• County assessor and tax records — Publicly available assessed values, property characteristics, and ownership records from county-level government databases.
• Federal data sources — The U.S. Census Bureau, American Community Survey (ACS), and Federal Housing Finance Agency (FHFA) provide macroeconomic context, demographic data, and home price indices.
• Proprietary modeling — Our in-house models synthesize raw data inputs to produce refined estimates of current market values, equity positions, and trend trajectories.

Median Home Value Calculation

Median home values displayed on Local Equity Report are calculated using a blended methodology that combines multiple valuation signals:

1. Recent closed sales — Actual transaction prices from the trailing 90-day window form the primary valuation anchor.
2. Active listing prices — Current asking prices are adjusted for historical sale-to-list ratios to reflect probable transaction values.
3. Assessed values — County assessor valuations are adjusted using local assessment-to-market ratios to provide a third reference point.
4. Repeat-sales indexing — FHFA and proprietary repeat-sales indices are used to adjust historical data points to current-period estimates.

The final published median represents the 50th percentile of the blended value distribution for owner-occupied residential properties in each geography.

Home Equity Estimation

Home equity is estimated as the difference between a property's estimated current market value and the outstanding mortgage balance. At the aggregate level, our equity figures represent the median equity position for homeowners in each market.

Key inputs to equity estimation include:

• Estimated current market value — Derived from the blended valuation methodology described above.
• Outstanding mortgage balance estimates — Modeled from origination data, prevailing amortization schedules, refinance activity, and HELOC utilization patterns.
• Homeownership rates — Census-derived owner-occupancy rates determine the share of properties included in equity calculations.

The LER Index

The Local Equity Report Index (LER Index) is a composite score that captures the overall health and trajectory of a local housing market. The index ranges from 0 to 100 and is calculated using a weighted combination of:

• Median home value level (20% weight) — Normalized against national benchmarks.
• Year-over-year value change (25% weight) — Captures momentum and trend direction.
• Equity depth (20% weight) — Median equity as a percentage of home value, measuring financial resilience.
• Market liquidity (15% weight) — Days on market and months of inventory relative to historical norms.
• Affordability ratio (20% weight) — Median home value relative to local median household income.

An LER Index score above 65 indicates a strong market with healthy equity conditions. Scores between 40 and 65 suggest moderate conditions, while scores below 40 may indicate market stress or affordability challenges.

Update Frequency

Local Equity Report data is refreshed on a weekly cycle:

• Transaction data — Updated weekly as new closed sales are recorded and reported through listing aggregators and public records.
• Median values and equity estimates — Recalculated weekly using the most recent trailing-90-day window.
• LER Index scores — Recomputed weekly to reflect the latest market conditions.
• Year-over-year changes — Compared against the same week of the prior year for seasonal consistency.

County assessor data is incorporated as it becomes available, typically on an annual or semi-annual cycle depending on jurisdiction. Federal data sources (Census, FHFA) are updated quarterly or annually.

Statistical Methodology Notes

• Outlier treatment — Transactions below $10,000 or above the 99.5th percentile for a given market are excluded to prevent distortion from non-arm's-length sales or data entry errors.
• Smoothing — Weekly values are smoothed using a 4-week rolling median to reduce noise while preserving trend signals.
• Confidence intervals — Markets with fewer than 30 transactions in the trailing period are flagged with wider confidence bands and noted as "limited data."
• Seasonal adjustment — Year-over-year comparisons inherently control for seasonality. Month-over-month figures are adjusted to account for seasonal patterns in housing activity.
• Geographic boundaries — State and city boundaries follow U.S. Census Bureau definitions. City-level data uses Census-designated places (CDPs) and incorporated municipalities.

Questions about our methodology? Contact us at info@localequityreport.com.