Realty Times November 30, 2005

Terrific Private Sector Online Economic And Housing Data Sources
by Blanche Evans

Here are the best domestic economic and housing resources that are operated as nonprofit or private sector entities. A lot of information is free to the public, while much is also available for sale.

  1. Realtor.org -- The NAR, a trade organization representing over 1.2 million members, keeps a monthly list of leading economic indicators at Realtor.org under the research button found here.

The list includes:

  • Existing home sales (EHS): Defined as approximately 85 percent of housing sales. About 15 percent of EHS would be for-sale-by-owner homes (FSBOs). Most FSBOs still add to the economy in terms of mortgage origination, home inspection, moving services, and the employment of other services related to selling and buying a home.

  • Pending sales: Those existing home sales which have gone under contract, but have yet to close escrow.

  • New home sales: New home transactions that are under contract and not closed, involving properties purchased directly from builders.

  • Housing starts: Homes that have begun construction (digging).

  • Mortgage interest rates: The amount for which borrowers can lock in loan rates and terms on that day at that moment.

  • Mortgage applications: The number of applications, not approvals, for loans (this number does not necessarily coincide with pending sales as many people apply for a mortgage before choosing a home, or apply for a second mortgage or home equity loan while already under a mortgage.)

The NAR is also a terrific source of ongoing research, such as its Insights product, a monthly newsletter full of text, tidbits, and tantalizing forecasts.

  1. NAHB.org -- Like the NAR, the National Association of Home Builders provides excellent information about new home builders and remodelors. The organization is politically active with a strong government affairs lobby, and though not as strong as the NAR's, it works to provide information to the popular press to benefit its members, consumers and local communities. David F. Seiders is chief economist and senior staff Vice President at the NAHB; NAHB operates a blog here.

  2. Homeownershipalliance.com -- A coalition of almost 20 organizations committed to ensuring support for the American housing system, the Homeownership Alliance membership includes the Consumer Federation of America, The Council of Insurance Agents & Brokers, The Enterprise Foundation, Fannie Mae, Freddie Mac, Habitat for Humanity International, Independent Community Bankers of America, Independent Insurance Agents & Brokers of America, Local Initiatives Support Corporation, National Association of Federal Credit Unions, National Association of Hispanic Real Estate Professionals, National Association of Home Builders, National Association of Mortgage Brokers, National Association of Real Estate Brokers, National Association of Realtors(R), World Floor Covering Association, National Bankers Association, National Council of La Raza, and National Urban League.

    Data is derived from public opinion polls, surveys and focus groups, as well as studies contributed by the members. The site also answers basic homeowner questions. Except for the news release section, which includes analyst forecasts, watch out for outdated data, as fresher information is available on some topics through other sources.

  3. Fanniemae.com and Freddiemac.com -- Fannie Mae and Freddie Mac were established and chartered by the federal government as privately-owned entities with special legal status as government sponsored enterprises (GSEs), which includes tax and regulatory exemptions, enhances the perceived quality of the debt and mortgage-backed securities (MBSs) that they issue or guarantee, and translates into a federal subsidy. They work to make sure mortgage money is available by working with lenders to make sure they don't run out of mortgage funds, so more people can achieve the goal of homeownership. Fannie Mae's chief economist David Berson provides a monthly outlook, while Freddie Mac's counterpart Frank Nothaft does the same.

    Freddie Mac's "Fact Book" is especially interesting for economic snapshots related to the mortgage industry, such as homebuyer initiatives, credit information, predatory lending opposition, and delinquency rates. Both sites provide insights into housing, the mortgage industry and the economy.

  4. MBAA.org -- Again, like the NAR, the Mortgage Bankers Association is a large trade organization where over 500,000 are employed (at least, in boom times) in the real estate finance industry. The MBA produces documents and analysis of exacting detail such as its excellent Housing and Mortgage Markets report, state and local news, and mortgage and economic forecasts.

    There is a broad set of available data on mortgage markets and real estate markets for both the residential and commercial real estate and real estate finance industries. The data is collected from proprietary MBA surveys and public data sources for the use of people interested in the markets. In addition, a number of MBA studies can be found on MBAA.org and also on the website of the MBA's research trust fund, The Research Institute for Housing America. Doug Duncan is chief economist.

  5. Jchs.harvard.edu -- The Joint Center for Housing Studies is Harvard University's center for information and research on housing in the United States. Run by senior faculty with backgrounds in economics, demographics, and finance, the Center "analyzes the dynamic relationships between housing markets and economic, demographic, and social trends, providing leaders in government, business, and the nonprofit sector with the knowledge needed to develop effective policies and strategies." Excellent reading is the Center's "State of the Nation's Housing," which is released annually. Nicolas P. Retsinas is the Center's director.

  6. NHC.org -- The National Housing Conference is a nonprofit consumer advocacy group for housing and public policy. The Center for Housing Policy is the NHC's research affiliate, and it delves into such research topics as housing for working families. Such studies may be funded by Freddie Mac or other supporters and patrons.

  7. Cepr.net -- The Center for Economic and Policy Research, an independent and privately funded think tank of doctorate-level researchers, features a special section on its website about the "housing bubble." Co-founder Dean Baker, PhD. and others compare housing prices and rents with jobs and household wealth to some bubble-warning conclusions.


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