Existing Home Sales (NAR)

Definition

Existing Home Sales (NAR) is a statistical measure used by the National Association of Realtors® (NAR) to gauge the number of residential properties sold and transferred, covering single-family homes, condominiums, and co-operative housing. The NAR gathers data from various Multiple Listing Services (MLS) across the United States and computes this to provide a national outlook as well as segmented data for four specific regions: the Northeast, Midwest, South, and West.

Examples

Monthly Report Example: In March 2023, the Existing Home Sales report indicated that the number of home sales in February decreased by 5% from January and by 3% from the same month the previous year. However, the median home price increased by 2% year-over-year.
Annual Trend Example: The 2022 annual report showed a 6% overall increase in existing home sales from the previous year, along with a 7.4% rise in the median home price. This data signifies a robust real estate market with growing demand.

Frequently Asked Questions (FAQs)

1. How often is the Existing Home Sales report published?

The Existing Home Sales report is typically released monthly by the National Association of Realtors®.

2. What types of properties are included in the Existing Home Sales data?

The data includes single-family homes, condominiums, and co-operatives.

3. What is the difference between existing home sales and new home sales?

Existing home sales refer to the transaction of previously owned homes, while new home sales pertain to newly constructed properties.

4. Can the data from existing home sales indicate future trends in the housing market?

Yes, trends in the Existing Home Sales report can provide insights into the health and direction of the housing market.

5. Where can I access the Latest Existing Home Sales data?

The data is frequently updated on the National Association of Realtors® website and various financial news platforms.

Multiple Listing Service (MLS): A database system that allows real estate brokers to see property listings from others to find clients for those properties.
Median Home Price: The middle value of home prices; half of the homes cost less and half cost more.
NAR (National Association of Realtors®): The largest trade association in the United States representing real estate professionals, providing economic data and advocacy for the real estate industry.
Pending Home Sales: A measure of existing-homes sales contracts signed but not yet completed.
New Home Sales: Statistics that measure the sale of newly constructed residential houses, distinct from previously owned homes.

Online Resources

References

National Association of Realtors®. “Existing Home Sales”. NAR Research Group.
U.S. Census Bureau. “Housing Vacancies and Homeownership (CPS/HVS)”.
U.S. Department of Housing and Urban Development (HUD).

Suggested Books for Further Studies

“Real Estate Market Analysis: Methods and Case Studies” by John M. Clapp and Stephen D. Messner.
“The New Reality of Wall Street: An Investor’s Survival Guide to Triple Waterfalls and Other Stock Market Perils” by Donald R. J. Wolff.
“Investing in Real Estate” by Gary W. Eldred and Donald Trump.
“Real Estate Principles: A Value Approach” by David C. Ling and Wayne R. Archer.

Real Estate Basics: Existing Home Sales (NAR) Fundamentals Quiz

### What types of properties are included in the Existing Home Sales data? - [x] Single-family homes, condominiums, and co-operatives. - [ ] Only single-family homes. - [ ] Only newly built homes. - [ ] Commercial real estate properties. > **Explanation:** The Existing Home Sales data includes single-family homes, condominiums, and co-operatives, offering a comprehensive view of residential real estate transactions. ### How often is the Existing Home Sales report published by NAR? - [ ] Annually - [x] Monthly - [ ] Quarterly - [ ] Biannually > **Explanation:** The National Association of Realtors® publishes the Existing Home Sales report on a monthly basis, providing frequent updates on the housing market. ### What does an increase in the median home price signify? - [ ] A decreasing housing demand. - [x] Increase in housing demand or improving market conditions. - [ ] An oversupply of homes. - [ ] Stagnant market conditions. > **Explanation:** An increase in the median home price usually implies higher demand or improving market conditions, suggesting a more competitive real estate market. ### What geographic segments are included in the NAR Existing Home Sales data? - [ ] Only the nation-wide data - [ ] State-specific data - [x] Nation and four regions: Northeast, Midwest, South, and West. - [ ] City-specific data > **Explanation:** The NAR Existing Home Sales data is segmented into national figures and four major regions: Northeast, Midwest, South, and West. ### What is the main source of data for the Existing Home Sales report? - [ ] Public registers - [ ] Bank records - [x] Local Multiple Listing Services (MLS) - [ ] County tax records > **Explanation:** The data is primarily sourced from local Multiple Listing Services (MLS), which provide a comprehensive listing of property transactions. ### Why is Existing Home Sales data important for the economy? - [ ] It determines federal tax policies. - [ ] It regulates interest rates. - [x] It provides insights into the economic health and stability of the housing market. - [ ] It predicts global housing trends. > **Explanation:** Existing Home Sales data provides insights into the health and stability of the housing market, which is crucial for understanding economic trends and consumer behavior. ### Which organization is responsible for reporting Existing Home Sales? - [ ] U.S. Treasury - [ ] U.S. Census Bureau - [x] National Association of Realtors® (NAR) - [ ] Federal Reserve > **Explanation:** The National Association of Realtors® (NAR) is responsible for compiling and reporting Existing Home Sales data. ### What kind of price metrics are reported in the Existing Home Sales data? - [ ] Highest and lowest prices - [ ] Land prices - [x] Median and mean sales prices - [ ] Discount rates > **Explanation:** The Existing Home Sales report includes metrics like the median and mean sales prices to provide a detailed analysis of pricing trends. ### Can trends from the Existing Home Sales report be used for investment decisions? - [x] Yes, as they indicate real estate market conditions. - [ ] No, because they are historical data. - [ ] Only for short-term investments. - [ ] Only for commercial properties. > **Explanation:** Trends from Existing Home Sales reports can be a valuable tool for making informed investment decisions, as they indicate the current market conditions and trends. ### Who benefits from analyzing Existing Home Sales data? - [ ] Only real estate investors - [ ] Only economists - [x] All stakeholders, including investors, economists, policymakers, and buyers - [ ] Only home sellers > **Explanation:** Various stakeholders—including investors, economists, policymakers, and home buyers—can benefit from the insights provided by the Existing Home Sales data.