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Existing Home Sales Not As Good As Originally Thought
Just when you think the news on the housing market can not get any worse comes the news that existing home sales from 2007 to 2010 were not as good as reported.
According to the National Association of REALTORS, far fewer homes have been sold over the past five years than were previously estimated. NAR says it plans to downwardly revise sales figures of previously owned homes dating back to 2007.
The monthly numbers released by NAR are a closely followed gauge of the health of the housing market. It appears that there are two main factors that have led to the overstating of the sale of homes.
The growth of many of the regional areas has afforded opportunities of Multiple Listing Service boards to expand into new areas. For example: A REALTOR can list a home in the MLS for that region, however, if they want to reach out to a near by metro area, they can also list it in that MLS directory. When the house is sold it may be counted as two transactions when in fact, it is only one.
The other area that probably has a larger impact is that more and more people who are selling their homes are using an agent. When the market is booming, some homeowners may sell the home themselves. These homes are not counting in the statistics of sold homes. As the real estate market hs become more difficult, more of these home owners have relied on real estate agents to conduct the sale, thereby causing an increase in the number of counted transactions, but not necessarily an actual increase in the number sold homes.
The chief economist for NAR reported that the median price of homes will not be affected by this reporting issue. It is also worth noting that the sale of new construction homes was not affected by this either.
In reality, I don’t believe this will substantially change much of the upticks that we have seen in the housing market in the last few months. Home prices are low; interest rates are historically low; and the market, especially in the Williamson County and Greater Nashville area have been steadily improving and will continue to do so.
As always, if I can help you with any of your real estate needs, or to answer any questions you may have, please don’t hesitate to contact me by text or phone call at 615 417-8182 or email me at RolandLow1@gmail.com.