Everyone is talking about how DataQuick's sale volume numbers are so scary low this August compared to last August. But have we forgotten that DataQuick changed their methodology last Januay? Yup! The numbers under the current DataQuick calculations actually come out higher than they used to. This is what DataQuick says about the new method of counting the number of sales:
So the number of sales DataQuick now reports each month will be significantly higher than it would have been prior to January, 2007 and thus the decline is even worse than it appears to be at first glance. Check it out here.
To count as an "arm's-length" sale for our sales counts, the logic we've used insisted that there be a seller, a buyer, and that money changed hands. We've now expanded this to include transactions where there was a purchase loan if no price was apparent.
We're also now including multiple sales transactions. If three homes were bought in the same transaction, we now count them as three home sales, not one sale.
These changes increase monthly sales counts by an average of 10 percent. Intra-family transfers are not included, nor are foreclosures until a home is re-sold to a new buyer.