The best way to understand the confusion is to try to understand, where these different reports are getting their information from, and what they are basing them on.
For the National Association of Realtors®, Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from multiple listing services. These are the actual transferring, “money for keys” at the closing. Changes in sales trends outside of MLSs are not captured in the monthly series.
Existing-home sales differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit; the beginning stages of the home buying process.
Because of these differences, it is not uncommon for each series to move in different directions in the same month. The Census Bureau is reporting “potential” home sales, more than actual home sales, which the National Association of Realtors® is using. .
Also consider, not all properties are sold using the MLS. Example, For Sales BY Owners (FSBO) won’t be included along with any other private sales,outside MLS listings.
The U.S. Census Bureau’s need to make periodic adjustment, because not all contracts are fully executed to the point Money is exchange for the keys.
The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months.
Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Changes in sales trends outside of MLSs are not captured in the monthly series by the National Association of Realtors®. A re-bench marking of home sales is done periodically using other sources to assess the overall home sales trend, including sales not reported by MLSs, the FSBO’s as an example.
Hopefully, these are the different reporting method used and the way I interpreted the information taken from and explain, Courtesy of Lawrence Yun , NAR chief economist http://www.realtor.org/news-releases/2012/10/existing-home-sales-slip-in-december-prices-continue-to-rise-2012-totals-up
What should this mean to you?
In my opinion, absolutely nothing but perhaps a roller coasting of your emotions, unnecessary anxiety, confusion and some discussion at the water cooler. Hopefully you are not basing your decisions on these reports.
However,if you want the most accurate information about a physical location, your best source would be your local Realtors®. The Local MLS data base is the most accurate source of sales and price information in specific areas because prices are determine by Realtors® doing comparatives market analysis on homes that are on the market for sales, have pending deals on them, or been sold the most recent, although there may be differences in reporting methodology between regions. When money for keys change hand, a sale is reported.
Banks use Broker Price Opinions, (BPO) to determine their offering price, done the same ways almost, as the CMA, and by a Realtor® most likely.
Now if you have a home, and want sell it, before you buy another, you need to take care of that.
Or, you can use it as investment property, turn it into a rental, hiring a property management company and accountant and turn it into income, having setting aside money in reserve for murphy laws and repairs that may come from your funds you were going to use in purchasing your new home. You’re the expert in what is happening in your area in rentals. Again your local Realtors® can help you as well.
The Company I am with, Advanta Realty offers property management to our investors or seansonal owners. We are actually more of a one source Realty Company in Florida.
Advanta Realty LLC,
Member of the National Association of Realtors®
3956 Town Center Blvd.,#329 Orlando, FL 32837
(866) 204-3050 Office. Call Them,
they will put you in touch with a Realtor®, in the area of your interests, let them know Realtor®,Ron W sent you.
So who do you call when you want to find out about a particular property status, A Realtor®!
If you not working with one, you wasting a lot of your time, let us ( A FULL TIME Realtor®) do what you are trying to do,
Costs: If you’re a buyer, there no costs for our service, the seller pays. In return, you get the properties that close fits your needs with the latest status and their updates. You won’t need to spend your time looking, and wondering. You free from those thoughts. And if the Realtor® is not working out for you, get another one! Best time to learn about a Realtor® is before you enter into a Contract. I take my clients seriously and passionately try to serve their needs. Respond to their questions in a reasonable time. Communication is important. Solving problems another. There never a thing with too much honesty, and Integrity at the expense of greed. I work for a successful transaction between buyers and sellers.
If you are a Seller, you are paying a small commission, which is use for paying both the Seller and buyers agents. In return, you receive good marketing strategy and maximum exposure of your property, in hopes for a quicker sale.
Most importantly what the Realtors® are doing for both the buyer and seller, it free their time, to do some of the things they need to do,earned their living, spend quality time with family and friends, plus have time to relax more and deals with less anxiety and stress, and recharge yourself, then trying to guess if the property is still available or why it has not sold! Also,having a Realtor® with multiple listings are not necessary in a Seller best . interest too. Your interest is your house !
Thank you if you stayed with my post. If it helped some and gave you a different propective, than I accomplish some of my goals, Look for part 3 on Insight on Conflicting Housing Reports
Remember: “Pictures without ALL the information are never the total picture and always the whole story ~!” Realtors® Ron W
Ronald Wolchesky (aliasRealtor® Ron W)
You can Reach Realtor® Ron W via email: firstname.lastname@example.org Cell: 239-209-1923: H: 239-349-4684
Or Look for Properties in Southwest Florida: Fort Myers, Cape Coral, Lehigh Acres, Bonita Springs, Estero Plus If you missed part one of Insight on Conflicting Housing Reports > Realtor®Ron W Blog