Is MLS Supply Data Meaningless by Itself? In order to measure the total housing supply available (for sale) it is essential to know how many new homes are available for sale that are not listed on MLS, and yet when the real estate industry issues reports more often than not this vitally important part of the equation is missing.
The new homes for sale figure can move as quickly up or down, leading or lagging MLS trends, and will of course often go counter to MLS numbers. These are significant variable factors that cannot be ignored.
I believe the fluctuation of this big chunk of missing data renders most of the MLS analysis and commentary, at least when MLS is reported alone, as meaningless for the public.
Here is an excerpt pertaining to MLS data from an article here: http://www.newlocalhome.com/editions/nlhr100722
While the number of newly listed homes on the Canadian MLS declined by 6.8 per cent in June compared to the previous month, a declining trend in new listings “will help maintain the balance between supply and demand, and temper home price volatility,” says the CREA.
The national average price of homes rose 4.9 per cent across the country, on a year- over-year basis, to $342,662.
So what value is this to me or my clients in Port Moody? What does this mean, and to whom? Who exactly is this of value for, and are they paying for it?
“…Homebuying is Easy” …at least according to the commentary in this same article, which is widely circulated throughout Greater Vancouver and Fraser Valley communities.
This assertion seems to be based on the supply of homes listed on MLS. I checked yesterday and the Real Estate Board of Greater Vancouver (REBGV) showed there were 17,889 listings available on a cross property search.
So we have key data missing from the supply side, no mention of demand, and a front page headline concluding that it’s Summer time, and “homebuying is easy”.
I find this type of reporting misleading and outright irresponsible; what is your view?