The Home Demand Index (HDI) is a tool that takes MLS data and analyzes it to figure out if your area is HOT or NOT.

A score of 100 is exactly average. A higher score means more Buyer demand, and lower than 100 means less. Pretty basic, right? Keep in mind - this is all based on the AVERAGE. (Mean, Median, or Mode some of you math folks might wonder? Well we don’t know, so stop asking!)

What does that mean though? Well, if the entire market is slow, the average demand will be lower. Take for example the pandemic. During that time, Buyer interest almost disappeared. Which means that even if your area had a higher than average score, it could still mean that selling would go slowly.

How does the HDI work? Honestly, we’re not 100% certain as we’ve never been invited to review their code, but we can make a pretty good guess. The HDI takes Bright MLS data for “Cumulative Days On Market” (CDOM), the number of showing requests a property has received, and how quickly those showings take place while the listing is on the market. It then uses these metrics to compare among listings, and determines which areas are selling quickly and have the most focus from Buyers.

Big Data can be pretty cool when it’s not using your smart speakers to listen to you while you sleep, huh?