Like canaries used as early warning indicators to detect poisonous gas in coal mines, this score attempts to provide early warning of potentially weak, weakening or even crashing Metro and State markets. Real estate markets tend to appreciate in a stair-step up fashion but take an elevator down when depreciating!
For county & zip code micro markets use the “Parent Canary Alert” as a general guide.
Entering markets with Canary scores below ___ should be done with caution, if at all. Scores below ___ require extreme caution and can often indicate or precede significant loss of home values.
Scores above 70 can indicate strong upward MOMENTUM but not necessarily an entry point into this market or adding to your position. Use the other indicators, scores, and tools for better entry point timing signals.
The indicator represents the Percentile Ranking when compared to ALL markets nationwide. Note that percentile rankings are useful for measuring RELATIVE performance BETWEEN markets, not for measuring the absolute performance.
Past performance of any indicator, score or algorithm is not indicative of future results. Do your own analysis before entering or exiting any market.
