NAR adjusts housing stats

Last week the National Association of Realtors announced it was changing the way it reports home sales. The practice of "bench marking" had been intended to predict and include in housing statistics, the activity of homes offered for sale by owner (FSBO). A recent discovery that fewer persons were opting to sell their own homes led to the change.

As a result, data has been altered downward as far back as 2007, lowering housing sales figures for the past several years. According to NAR, this did not change the month to month characterization of market conditions. "From a consumer's perspective, only the local market information matters and there are no changes to local multiple listing service (MLS) data or local supply-and-demand balance, or to local home prices," said Lawrence Yun, Nar's Chief Economist - who will appear in Coeur d'Alene at our local Market Forum in February.

A divergence developed over time between sales reported by MLSs and sales determined by a U.S. Census benchmark; the variance began in 2007. Reasons include growth in MLS coverage areas from which sales data is collected, and geographic population shifts. "It appears that about half of the revisions result solely from a decline in for-sale-by-owners, with more sellers turning to Realtors to market their homes when the market softened. The FSBO market was overwhelmed during the housing downturn, and since most FSBOs are not reported in MLSs, national estimates of existing-home sales began to diverge based on previous assumptions," Yun said.

This year, across the nation, home sales have experienced an upward trend and that trend continued through November. The NAR's data included single family homes, townhomes, condominiums and co-ops which showed increased sales 4 percent above 2010. As we reported here, our sales locally exceeded last year's by 4 percent as of the end of November. The Coeur d'Alene Multiple Listing Service has never included benchmarking of FSBOs.

Yun said that more people are taking advantage of low home prices, "Sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010 - a genuine sustained sales recovery appears to be developing," he said. "We've seen healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today's market for buyers with long-term plans."

With interest rates remaining below 4 percent locally, many people are seeing an opportunity to lock in low payments for the next 30 years.

Just a reminder as we enjoy our Holidays sweetened by the act of giving, nonprofits across the state are in need of donations to meet the growing needs of those at risk of, or experiencing homelessness. The "Avenues for Hope Housing Challenge" is reporting very low participation from North Idaho. Gifts made through this challenge by Dec. 31 will help nonprofits qualify for a share of $27,000 in challenge grants. Together we can enhance the important work of organizations helping to keep Idahoans off the street. To see a list of North Idaho charities competing for these funds, visit: www.avenuesforhope.org.

Trust an expert... call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.

Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664.