by Risk calculated on 23/09/2022 13:17:00
Today, in the Calculated Risk Real Estate Newsletter: Why Existing Home Inventory Measurements Look Different
A brief excerpt:
There is a significant difference between inventory metrics, which leads to some confusion.
Here is a chart comparing the year-over-year change in Realtor.com Active Inventory, NAR Inventory, and Realtor.com Inventory including Pending Sales. Note that the blue line (NAR) and the dotted black line (realtor, including pending sales) follow.
As Lawler noted, the inclusion of pending sales underestimated the decline in active inventory in 2020 and 2021, and now underestimates the increase in active inventory.
But what about Redfin? Redfin takes a very different approach. Their active inventory number for any month includes homes that came on the market and sold quickly during the month, while other metrics are a snapshot at the end of the month (or week) .
There is a lot more in the article. You can register on https://calculatedrisk.substack.com/