Palos Verdes real estate market trends could be wrong if you’re not getting the information from the right source!
NAR’s Existing Home Inventory Number is Wrong
Here’s a surprise for you, the National Association of Realtors doesn’t know how many homes are for sale. Yesterday’s existing home sales announcement included NAR’s estimate that there are 2.2 million homes for sale. The data shows that it’s overstated by a third.
There are actually approximately 1.7 million homes on the market (active inventory) right now.
Palos Verdes Real Estate Market Trends
Altos Research (I provide this as a free customer service to my clients) tracks homes for sale in the 900 most populous counties (colored blue above) around the US. The Palos Verdes real estate market trends I provide cover not only the cities of Palos Verdes Estates, Rolling Hills, Rancho Palos Verdes, Rolling Hills Estates and the unincorporated area of Palos Verdes Peninsula, but the Palos Verdes real estate market trends service also covers 
the Beach Cities and South Torrance (90505 and 90503 zip codes)
NAR doesn’t disclose precisely the methodology they use, but their data is sourced from participating MLS organizations. Palos Verdes real estate market trends that you find on many of the public portals, are obtaining their data from MLS sources. NAR’s estimates are influenced by the reporting structure in those member associations. Incidentally, Realtor.com claims to have 4.7 million homes for sale, but that’s clearly a meaningless marketing number (more is better, right?) It includes duplicates, empty land, and other flotsam. Disregard that number.
The truth is that all these numbers are estimates. The best way to know for sure is to count them all.
When Altos counts the data, including that for the Palos Verdes real estate market trends and adjust for those counties, the total is closer to 1.7 million. (Altos Research covers 90 million residential homes in all 50 states. It’s not *everything* but the rest is very rural, so it’s really useful, see map.)
Why are they over estimating? No, it’s not because the scoundrels are trying to trick you. My guess is that some of these estimates include properties that already have offers. The number properties in “pending” state can be as high as 100% of the active inventory in many markets this year. As listings get offers quickly, then take a month or more before the transaction closes, these properties sit in pending state. The hottest markets this is most true, for example Las Vegas and San Diego have had screaming demand and price appreciation this year. They have huge stocks of properties “pending”. Different regions give different labels to the condition, but the result is the same. The sale hasn’t “closed” so the listing is technically active. But the property really isn’t for sale any more. Is that active inventory? Our take is that these are not active. If you’re shopping for a home in that market, your Realtor isn’t going to show you a house that is already in some stage of contract with another buyer.
The lesson, as always, is read the headlines with a critical eye. And here is where you can sign up if you want the full scoop on the active housing inventory every week. This report includes supply/demand trends, inventory levels, sale rates and more. So in conclusion, if you want accuracy in learning what the Palos Verdes real estate market trends are so that you can more intelligently plan for how you offer on one of the Palos Verdes homes for sale, or if you own one of the wonderful Palos Verdes homes and are thinking of selling, my Palos Verdes Real Estate Market Trends reports are your source – and it’s free; I pay the subscription fee for you.
Subscribe here: http://www.homeispalosverdes.com/altos-research-for-palos-verdes-homes-south-bay-real-estate/
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George Fotion, HomeIsPalosVerdes.com for ORIGINAL CONTENT
