Existing Home Sales: Up or Down? What's the Answer?

From the Daily Real Estate News, an online publication by the National Association of Realtors, it was reported that “Existing-home sales rose again in November and remain above a year ago, according to the National Association of Realtors. Also released ... were periodic benchmark revisions with downward adjustments to sales and inventory data since 2007, led by a decline in for-sale-by-owners.  Although rebenchmarking resulted in lower adjustments to several years of home sales data, the month-to-month characterization of market conditions did not change. There are no changes to home prices or month’s supply."

Read the full article here.

But that’s a national overview.  And we all know the age old adage for real estate don’t we? Let’s repeat it together, ready, “Location, Location, Location." And because of that, there is a corollary to that adage and that is “All Real Estate is Local." What that means is that it is of very little significance what the market is doing in Miami as to what the market is doing for Palos Verdes real estate. 

That being said, what is the Palos Verdes homes market looking like these days?  First, we need to understand that real estate, just like any other asset, is a commodity. It is ruled by the forces of supply and demand and that “ebb and flow” creates levels of “unsold inventory” by which we can gauge the strength of the market. The basic question is this: “How many days of unsold inventory are on the market today and how does that compare to times past?” This is what can provide us hints as to the direction of the market. Take a look at the chart to get a glimpse of what the Palos Verdes real estate market is doing today. For more information and additional proprietary charts, you’re welcome to call me or visit my website at HomeIsPalosVerdes.com.