Housing Statistics Anything But Clear
October 2nd, 2009 categories: Economic Recovery, For Buyers, For Homeowners, For Sellers, Housing Market
Did last week’s housing statistics released by the National Association of REALTORS® mean good news or bad news? I suppose it depends on how you look at them.
According to the REALTORS® association, existing-home sales in August dropped 2.7 percent from July. That’s the bad news. But sales also remained 3.4 percent above where they stood in August of 2008. Yes, that’s the good news.
Last week was a busy one as far as housing statistics go. Not only did the National Association of REALTORS® release its national numbers, the Illinois Association of REALTORS® released its local figures, too. Like the national figures, the local numbers showed that housing sales in Chicago fell slightly from July to August.
The numbers from both associations defy an easy analysis. Look at them one way and you’d say that the residential housing market, both nationally and here in Chicago, slumped in August. Look at them another way, though, and you could make the argument that the numbers show a stabilizing market.
Personally, I think both the national and local housing statistics offer more evidence that we are in the midst of a housing recovery. Housing sales traditionally dip from July to August. In August, families are more settled; they’re thinking about back-to-school time, not buying a home.
It’s no surprise, then, that housing sales fell, again both nationally and locally, from July to August. It’s what’s supposed to happen in a normal housing market.
So the next time you read that home sales have dipped, take a moment to think about what that really means. A drop in sales doesn’t necessarily mean that the housing market is on its way to another slump.
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