I use sales profiles to visualize the sales performance of a group of projects over time.
A sales profile for a condo project is just the cumulative percentage of sold units in the building, illustrated as a line on a graph, over time. The line begins in the month the condo project launched, at the percentage of units sold in that opening month, and then proceeds upwards (hopefully) and to the right, illustrating the cumulative percentage of sold units each month until 100% of the units are sold.
Usually we group projects together based on a competitive submarket area but they can be grouped by any parameter (ie. builder, sales broker, building height, unit price/sf, etc.) as a way to compare the relative sales performance over time of the subject group.
From the underlying data we can determine things like the average number of months it took for a project in the group to sell 70% of its units, or the average percentage of units sold in the first month (ie launch effect).
For instance, in 2010 there were 99 high rise project launches in the GTA and they sold an average of 41% of their units in the first month. As of February 28th, 2011, 48 of those 99 projects have reached the 70% sold level and on average it took them about 4.1 months to get there. For the other 51 project launches in 2010, each have been on the market for 6.6 months as of February 31, 2011.
For a visual representation of the sales in those 99 projects that launched in 2010, please watch the following video. It will show the sales profile for each new project in the order that they launched. If you have any questions or would like me to conduct a specific analysis for you, please don’t hesitate to contact me.