The Clever Market Heat Index (CMHI) measures whether a housing market at the national, state, metro, or zip-code level is currently a buyer's market, a seller's market, or a neutral market. The index covers all 50 states plus Washington, DC, and all zip codes nationwide.
Clever uses this index and its underlying Clever Market Pulse data as a foundation for the accurate, trustworthy information we provide and interpret for home sellers, home buyers, and investors throughout their real estate journeys.
The CMHI reflects aggregated market trends and may not capture hyper-local conditions, short-term volatility, or property-specific factors.
Data sources
The Clever Market Heat Index draws on current and historical data from the following public and private sources:
Methodology
To determine each housing market's heat index, Clever analyzes hundreds of current and past housing and economic data points for each market using a proprietary methodology.
First, we establish a market's typical neutral condition, where neither buyers nor sellers hold a clear advantage.
We then evaluate current market activity relative to that local baseline on a scale of 0 to 100 to determine whether market conditions favor sellers or buyers, or remain neutral.
We update our data on a rolling basis, keeping the index up to date with market dynamics.
Evaluating market conditions
To establish neutral market conditions, Clever evaluates historical patterns in each local housing market rather than applying a single national benchmark. This market-specific approach accounts for long-term differences in pricing behavior, transaction speed, and supply dynamics across regions.
Clever then assesses current market conditions relative to this local historical context. Instead of relying on raw values alone, Clever focuses on how today’s activity compares to what has been typical for that market over time. This allows the index to distinguish between markets that may look similar on the surface but behave very differently in practice.
To make comparisons intuitive and consistent, we translate market conditions into a standardized score ranging from 0 to 100.
A score of 50 represents historically typical, or neutral, conditions for that specific market. Scores closer to 0 reflect increasingly buyer-friendly environments, while scores closer to 100 indicate increasingly seller-friendly conditions. The scale is anchored using historically observed extremes to ensure scores reflect meaningful shifts rather than short-term noise.
Clever combines multiple standardized indicators using a proprietary weighting framework to determine a final Clever Market Heat Index score. Each component is evaluated independently before being incorporated into the overall score, allowing the index to balance multiple dimensions of market activity rather than relying on any single signal.
Keeping the index current
Clever weights its analysis based on ongoing analysis of how consistently different indicators reflect real-world market conditions across regions and market cycles.
Because housing markets evolve, all historical reference periods are recalculated on a rolling basis as new data becomes available. This ensures the index remains responsive to long-term structural changes while still grounded in observed market behavior.
Clever Market Heat Index tiers
| Score | Description |
|---|---|
| Less than 25 | Strong buyer’s market |
| Between 26 and 35 | Moderate buyer’s market |
| Between 36 and 42 | Mild buyer’s market |
| Between 43 and 58 | Neutral market |
| Between 59 and 65 | Mild seller’s market |
| Between 66 and 75 | Moderate seller’s market |
| Greater than 75 | Strong seller’s market |
Limitations and appropriate use
The Clever Market Heat Index is most reliable for the following:
- Understanding market trends
- Comparing market conditions across states, metros, and zip codes
- Identifying shifting markets
The Clever Market Heat Index should NOT be used for the following:
- Making individual property valuations or pricing
- Timing your buying or selling decision
