All glossary terms

Market Velocity

Definition

Market velocity describes the speed at which homes move from listing to under contract. It is frequently expressed as a 0–100 score derived from median days on market, where faster markets score higher.

Formula

Derived from median days on market (higher = faster market)

How to interpret it

High velocity reflects strong demand relative to supply — buyers must act quickly and have little negotiating room. Low velocity gives buyers time and leverage. Velocity often turns before prices do, making it a useful early signal of a shifting market.

See market velocity for any state, metro, county, or ZIP code in the Reatlas Market Explorer.

Explore the data

Related terms

Source: Reatlas analysis of U.S. Census American Community Survey (ACS), Realtor.com, and Zillow market data.