REintel Market Pulse Score (RMPS) Methodology
Overview
The REintel Market Pulse Score is a 0-100 composite index that answers a simple question: is this a buyer's or seller's market? The score combines seven market indicators, each weighted by its predictive importance, into a single number that updates monthly.
Score Bands
| Score Range | Classification |
|---|---|
| 0 – 20 | Strong Seller's Market |
| 21 – 40 | Seller's Market |
| 41 – 60 | Balanced Market |
| 61 – 80 | Buyer's Market |
| 81 – 100 | Strong Buyer's Market |
Input Weights
| Input | Weight | Range |
|---|---|---|
| Months of Inventory (3-month) | 25% | 1 – 10 months |
| Absorption Rate | 20% | 0 – 50% |
| Sale Price to List Price Ratio | 20% | 0.90 – 1.10 |
| Days on Market | 15% | 7 – 90 days |
| Price Reduced Percentage | 10% | 0 – 60% |
| Sales-to-New-Listings Ratio | 7% | 0 – 100% |
| HPI 6-Month Change | 3% | -10% – +10% |
Algorithm
- Each input is normalized to a 0-1 scale using min-max scaling, then clamped to [0, 1] to prevent out-of-range values from inflating the score.
- For "seller-favoring" inputs (absorption rate, SP/LP ratio, SNLR, HPI change), the normalized value is flipped (1 - normalized).
- Each clamped normalized value is multiplied by its weight and summed.
- The sum is scaled to 0-100.
- A 2-month trailing mean is applied to smooth month-to-month noise.
Data Requirements
- Minimum 6 sales in 6 months before publishing a score.
- If 3 or more of the 7 inputs are null, the score is suppressed.
- When individual inputs are null, their weight is redistributed proportionally across remaining non-null inputs.
Mixed Signals
When the standard deviation of the 7 normalized components exceeds 0.25, a "Mixed Signals" badge is displayed. This indicates that market indicators are sending conflicting messages, and the composite score should be interpreted with caution.
Version
RMPS v1.0. Weights are based on expert judgment validated against Canadian Real Estate Association (CREA) quarterly market characterizations.