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Do You Care About Housing Market Signs?

Last month, new home sales fell [3], existing home sales spiked [4], and I want to know does that really matter to you? They say that new home sales are indicative of the future of the housing market because it’s based on signed contracts for new home delivery sometime in the future, usually a month. Existing home sales are recorded at closing which occurs a month or more after the signing of a contract, so it lags the state of the market. However, both are national measures which we all know aren’t accurate because a quick look at what $300k can buy you in Houston, TX and Howard County, MD [5] will show you that the market in both areas of the country have been moving at different speeds.

I believe the only place national stats matter is when you’re talking mortgage loan rates and the housing market lags mortgage rates. The rates are going up, that’s why housing sales are decreasing, it’s not the other way around. So really, I don’t think national stats matter at all when you’re thinking about selling or buying a home… the local stats matter significantly more.