Home Sales Contracts Set Alarm Bells Ringing
Yesterday we reviewed the data on what the National Association of Realtors (NAR) calls "Existing Home Sales" (EHS) as if that number is a current event and an important data point. In fact EHS reports the number of previous sales contracts on existing homes that went to closing in May. Sales that closed in May typically took place in March and April. Sales normally take place from 4 to 12 weeks before the closing. Around 90% +/- of all sales close. The closing is a formality. Why wait for 3 month old data when we have the data for last month.