Existing Home Sales Report vs the New Home Sales

Posted by on 4:34 pm in Updates | 0 comments

Existing Home Sales Report vs the New Home Sales

Each month, real estate agents and brokers get two reports back to back: The Existing Home Sales Report and the New Home Sales Report.

While they sound like they are pretty much the same they are indeed drastically different.

The Existing Home Sales Report derives it’s figures and data from The National Association of Realtors. It’s based on exactly what you might think it is, the number of existing homes sold over a given period of time.
Existing home sales account for roughly 85% of all home sales.

The New Home Sales Report doesn’t come from N.A.R. – it comes from the builders themselves.
It’s what we call a fuzzy number.
It’s actually the number of initial sales contracts signed over a period of time.
A contract is fine, but here’s where the fuzzy comes in.
When will those houses be completed?
When will the buyers move in?
How many of those contracts go to completion (as in a funded loan)?
Would you believe 30 to 40 % of those contracts will drop out?
That’s Financial Fuzzy-ness.

How many in the Existing Home Sales report will drop out?
Zero. They are real and hard numbers. They are actual completed sales.
See the difference?

Then there are the incentives. Read the full story.


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