Existing Home Sales Drop?
by Osman Parvez
A recent NY Times piece reported a 2.7% drop in existing home sales. The author notes that homes still showed increased appreciation nationwide, “by 16.6 percent to $218,000 compared to the median — or midpoint — price in October 2004.”
Ok, given this information, a reader might think the 2.7% drop is referring to the same period, year/year (October 2005 vs 2004). Oops. The NYT is mixing statistics. The 2.7% drop nationwide is a month/month statistic. There were actually a few months during 2004 that showed a decrease from the previous month, while the majority showed increasing month/month sales.
What really matters, as any analyst will tell you, is the numbers as compared to the same period a year earlier. If you look at it this way, there was actually a 3.7% INCREASE in the number of existing homes sold. Breaking it down by region, the Northeast saw a 0% change, the Midwest a 1.3% increase, the South a 7.0% increase, and the West a 3.8% increase.
This is why it pays to do your own homework.
All statistics are on a seasonally adjusted basis, taken from the data from NAR.
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As always, your referrals are deeply appreciated.
The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate.
Existing Home Sales Drop?
by Osman Parvez
A recent NY Times piece reported a 2.7% drop in existing home sales. The author notes that homes still showed increased appreciation nationwide, “by 16.6 percent to $218,000 compared to the median — or midpoint — price in October 2004.”
Ok, given this information, a reader might think the 2.7% drop is referring to the same period, year/year (October 2005 vs 2004). Oops. The NYT is mixing statistics. The 2.7% drop nationwide is a month/month statistic. There were actually a few months during 2004 that showed a decrease from the previous month, while the majority showed increasing month/month sales.
What really matters, as any analyst will tell you, is the numbers as compared to the same period a year earlier. If you look at it this way, there was actually a 3.7% INCREASE in the number of existing homes sold. Breaking it down by region, the Northeast saw a 0% change, the Midwest a 1.3% increase, the South a 7.0% increase, and the West a 3.8% increase.
This is why it pays to do your own homework.
All statistics are on a seasonally adjusted basis, taken from the data from NAR.
—
As always, your referrals are deeply appreciated.
The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate.
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More about the author
Osman Parvez
Owner & Broker at House Einstein as well as primary author of the House Einstein blog with over 1,200 published articles about Boulder real estate. His work has appeared in the Wall Street Journal and Daily Camera.
Osman is the primary author of the House Einstein blog with over 1,200 published articles about Boulder real estate. His work has also appeared in many other blogs about Boulder as well as mainstream newspapers, including the Wall Street Journal and Daily Camera. Learn more about Osman.
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