"US Existing Homes Sales
Plunge in November 2015"...NOT!
Misleading news seems to be the fallacy of today's news environment. Every major news organization are set to bring drama and bad news for ratings and they have plenty of it..
This week it wast reported,
The US existing Home Sales has plunged over 10%!
Reporting particularly dramatic events are taken to outweigh a significant amount of statistical evidence...
The evidence is very clear,
The reason why HOME SALES PLUNGED over 10% in November 2015 is very simple:
A new government regulation was just implemented in October 3rd
This is the new “Know Before You Owe” mortgage rule, commonly known as the TILA-RESPA Integrated Disclosure (TRID) rule.
These new regulations put a HALT STOP to many transactions in November..
Everyone was trying to figure it out how to comply with it..
This is why many transactions where delayed..
See Chart below (courtesy of KCM)
November's rise in numbers indicates exactly the time when this new regulation was implemented
The 3 day difference between October and November is EXACTLY 10% on one month's numbers..10% of transactions were delayed in November...DUH!
So, what is the true market indicator out there..
Without the drama most news organizations seem to invent for better ratings..
Let's see how is the housing market actually doing right now...
The best indicator to forecast and look at how well the housing market is doing is to look at the "Foot Traffic Report" from NAR (National Association of Realtors)
This report indicates the number of prospective buyers that are actively looking for a home at the current time;
So let's check what this report says in one single glance..(courtesy of KCM)
It is very obvious..
That demand to buy single family homes is increasing over the last few months - not decreasing.
So if you are planning to sell a house soon, don't panic, no matter what last month’s sales numbers show, the housing market is still doing well as demand remains strong.
...and if you are thinking to buy soon,
sooner is better than later for these two reasons alone:
- Interest rates are creeping up
- Less competition in the Winter months
Whether you are ready to sell or buy,
Give us a call, we have the "pulse of the market:,
so you can make the RIGHT MOVE!
301-246-0001 for immediate help