I was brought in by RealEstate Business Intelligence (RBI), the statistics and research arm of MRIS to further their effort to provide more transparency in their regional housing market. One of the first things I did with their information, whose depth and quality is unlike anything else I have ever analyzed, is build a pending home sales index for the Washington, DC Metro and Baltimore Metro markets.
The biggest problem in understanding the state of housing today is the quality and timing of the information. This podcast is a review of my thoughts on the subject and why a pending home sale index tends to be better at providing the state of a housing market than price indices.
Hint: they lag the moment when buyer and seller agree on a price aka “meeting of the minds” by as much as 5 months, don’t consider the different seasons of the year and are often skewed by seasonal adjustments.
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[…] state of the housing market than any other index available for the region covered by MRIS. Why? Click here for The Housing Helix Podcast to find out.If you’d rather not listen to my voice for 6 minutes 24 seconds, here are the key points:1. […]