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[September 26, 2024] Enhanced Sale Event Insights, Improved Performance, and Data Standardization

3 months ago by ReadMe API

v0.20.0

We’re excited to announce several major updates that enhance the functionality and performance of our API:

  1. Enhanced Property Event History: New event types and fields for richer transaction context, including inter/intra-portfolio transfers and improved sale indexing.
  2. Optimized Performance: Faster response times for property/search and property/event_history endpoints.
  3. Standardized ZIP Codes: Streamlined data structure using Census-based ZIP codes for more robust historical comparisons.

1. Additional Context for Housing Events in Property/Event_history

We've added new event types and fields to provide richer context around property transactions. These additions leverage our comprehensive data sources to create our own event indexing based on the actual transaction details, including deal value and involved parties. This approach eliminates single-source risk where transactions might be misreported.

Our intra and inter portfolio sale events are highly differentiated, specialized fields. Our true owner, portfolio-level indexing allows us to distinguish between units being transferred within portfolios (such as for tax purposes) and those changing hands to new entities (like in portfolio sales, mergers, or bulk purchases of BTR communities). This granular insight provides a more accurate picture of real estate market dynamics.

New Event Types

Sale Events:

SOLD: Transactions conducted at fair market value between unrelated parties.

Example: A individual purchases a home from a seller they have no prior relationship with for $350,000, which aligns with current market values in the area. This transaction represents a genuine market sale and can be used in analyses to determine true property values and market trends.

NON_ARMS_LENGTH_TRANSFER: Transfers where the buyer and seller have a pre-existing relationship (e.g., identical last names) or the transaction isn’t at fair market value (price is $0 and not in a Non-Disclosure state).

Example: A homeowner transfers their property to their child for $1. This transaction doesn't reflect market value and involves related parties, allowing analysts to exclude it from fair market value calculations and trend analyses.

SOLD_INTER_PORTFOLIO_TRANSFER: Transactions between two distinct entities.

Example: Invitation_Homes purchases a bulk set of properties from a large homebuilder. This represents a genuine transfer of assets between separate companies.

NON_ARMS_LENGTH_INTRA_PORTFOLIO_TRANSFER: Transfers within the same entity portfolio.

Example: Tricon updates its LLC associated with a property for a new tax year. This is not a true sale event / acquisition and can now be tracked/filtered as such.

New Fields for Sales History Context

current_owner_flag: Indicates if the listed owner is the current owner at the time of the event.

transfer_index: Counts the number of transfers (any SALE event) a property has undergone up to the event date.

true_sale_index: Counts genuine property sales resulting in ownership changes under fair market conditions (SOLD) up to the event date.

We believe these updates will significantly improve your experience and analytical capabilities with our property level data. Thank you for your continued support and feedback!

2. Enhanced Performance for Property-Level Endpoints

Improved Backend Performance: We’ve optimized the backend for the property/search and property/event_history endpoints. You can expect faster response times and more efficient data retrieval.

3. Reformatted ZIP Columns in Property/Search

Streamlined Data: We have reformatted the ZIP code columns in our responses, removing the USPS fields and standardizing on Census-based ZIP codes. This change simplifies data structures, reduces clutter, and enhances data processing efficiency. This version of the ZIP code endpoint enables more robust historical comparisons, as Census-based ZIP codes provide greater stability over time compared to those from the USPS.

Breaking Change: Please note that this is a breaking change requiring an SDK update. Ensure you update your SDK to the latest version to accommodate these changes.