Experts disagree over the chances of a new housing boom and bust, although little can be done to stop it, according to Ardavan Mobasheri, chief economist of AIG, the Palm Beach Post reported. “So long as individuals have the liberty and freedom to be greedy, the speculative bubbles will be inevitable, and we’ll have to deal with the outcome of the bursting of that bubble. There is no measure we can take to prevent investors who want in a short period of time to become rich.” [more]

Earlier this month, the National Association of Realtors announced it would revise its existing home sales data for the last four years. But some critics, notably independent housing economist Thomas Lawler, said those revisions won’t fix the egregious errors the association has made in its calculations, and NAR needs to change its methodology, the Wall Street Journal reported.

Last week, NAR revised its figures by about 14 percent, indicating that far fewer previously occupied homes had sold than they knew of. Now, analysts are saying they are still wrong.
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Existing home sales increased 4 percent in November, according to a report released today by the National Association of Realtors, which also revised four years worth of data the organization previously announced was errant.

NAR downwardly revised existing home sales statistics dating back to 2007 by more than 14 percent. The association said the bad data stemmed from a previously unnoticed increase in the number of people that use brokers, and therefore an unaccounted for change in the market share that the multiple listing services throughout the country capture. – Adam Fusfeld

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Real estate and financial professionals that closely track the National Association of Realtor’s monthly existing-home sales data are in for a rude awakening. The New York Post reported that the association has admitted it has been reporting bad figures for every month since January 2007 and will revise four years worth of data downward starting next Wednesday.

The NAR attributed the bad data to a statistical glitch that counted some homes twice, along with geographic population shifts and a decline in owners selling their own home. [more]

Pending home sales rose strongly nationwide in October, increasing by 9.2 percent year-over-year, according to the October pending home sales report from the National Association of Realtors, released today.

The Pending Home Sales Index, which measures signed real estate contracts for existing single-family homes, condominium and co-op units, rose to 93.3 in October from 84.5 in September. In October 2010, the index was 85.5.

The Pending Home Sales Index in the South surged 8.6 percent to 99.5 in October and was 9.7 percent above October 2010′s index. An index of 100 equals contract activity from 2001. – Guelda Voien [more]

Florida sales activity jumped 10 percent in September for both condominiums and single-family homes compared to the same month a year ago, according to a National Association of Realtors report released today, thanks largely to huge increases in South Florida sales volume.

The condo market in the Miami area showed the greatest strength of any market in the state, as prices are on the rise and activity is at a record pace. The median price of a condo in Miami spiked 17 percent since last September, while activity rose 58 percent, bringing the 2011 sales pace to 29,000 transactions. According to the Miami Association of Realtors that would surpass the record set in 2005 (although condo sales prices still remain far below those witnessed during the peak). Miami single-family homes also performed well, as sales volume increased 46 percent year-over-year, although the median price dropped some 6 percent to $131,000.
– Adam Fusfeld
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International buyers were responsible for $3.8 billion worth of residential real estate sales in Miami, Miami Beach and South Florida in 2010, according to a National Association of Realtors report cited by the South Florida Business Journal.

Statewide foreigners accounted for $12.7 billion worth of sales, or 26 percent of the $48.8 billion of residential real estate sold last year. [more]

Sales activity and median sale price for existing Florida homes and condominiums rose in August, according to a report released today by Florida Realtors.

Statewide, 16,026 homes were sold in August, up 15 percent from a year ago. The median sale price of a Florida home increased 2 percent to $137,500. Nationally, the median sales price for an existing single-family home was $168,400, down 5.4 percent from a year ago, according to a National Association of Realtors report. — Adam Fusfeld
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Sales of existing homes fell nationwide in July, according to data from the National Association of Realtors released today, as tight lending and low appraisals — measures overcompensating for conditions that led to the boom — continue to plague the market. The seasonally adjusted annual rate of existing sales of single-family, townhomes, condominiums and co-ops fell 3.5 percent in July to 4.67 million. However that rate remains 21 percent greater than the 3.86 million pace from last July. The median price fell 4.4 percent from the same month a year ago to $174,000, with distressed properties accounting for 29 percent of the sales. Sixteen percent of NAR brokers reported contract cancellations in July, the same number as in June; 9 percent attributed it to low appraisals and another 13 percent reported renegotiated contracts due to low appraisals. – Adam Fusfeld [more]

Sales of existing U.S. homes slid last month after a sudden surge in canceled contracts, according to data released by the National Association of Realtors today. Lawrence Yun, chief economist for the trade organization, said he wasn’t sure of the reason for the cancellations, but said the tight credit market, low appraisals, uncertainty about the economy and the outcome of the federal debt ceiling debate may have contributed to the “unusual spike.” A survey of the trade organization’s members indicated that 16 percent of respondents had a sales contract canceled for a single-family home, townhouse, condominium or co-op in June, up from 4 percent who said that had happened in May. Those failed transactions resulted in a 0.8 percent decline in the nationwide home sales pace last month, to an annual rate of 4.77 million. – Sarabeth Sanders [more]