Last week, NAR issued revised estimates for existing-home sales going back five years, saying the formula it had been using to adjust the sales data it collects from multiple listing services had drifted and was overestimating sales.
The benchmark revisions to existing-home sales data show fewer homes changed hands than NAR had previously reported. However, the revisions show little change in previously reported trends in home sales, and no change in median home price, NAR said.
Also, because NAR is making a comparable downward adjustment to unsold inventory, the revisions won’t change the months’ supply of homes for sale — a critical measure of the balance between supply and demand. Many housing analysts consider a six-month supply of homes for sale to be a healthy balance between supply and demand.