1.Existing Home Sales. The National Association of Realtors gathers sales of existing homes on a monthly basis from a large number of multiple listing services boards (MLSs) across the nation. Existing home sales are recorded at the closing of a home purchase transaction. It is useful to look at the growth in existing sales from the previous month to obtain a sense of where the home sales market is headed. Year-over-year comparisons are also useful. Home sale data is seasonally adjusted. This data is easily accessible on most real estate Web sites, including that of the National Association of Realtors.

2.New Home Sales. The U.S. Bureau of Census reports new home sales on a monthly basis. This data series is somewhat erratic from month to month and is sometimes subject to substantial revisions. Month-to-month changes in sales volume as well as year-over-year comparisons are useful to home buyers and owners.

3.Condominium Sales. Sales of condominiums are reported by the National Association of Realtors on a quarterly basis. NAR began tracking the condo/co-op market in 1981; prior to the late 1970s, condos were not an important segment of the nation’s housing market. Condo sales comprise about 11 percent of total home sales. Month-to-month changes in sales volume as well as year-over-year comparisons are useful indicators of condo activity.

4.Housing Starts/Permits. The Commerce Department gathers data on housing starts and permits from a pool of about 19,000 towns, cities, and metropolitan statistical areas. The housing starts report includes single-family and multifamily units and is the most reliable indicator for residential investment and building activity. Housing permits are also gathered by the Commerce Department and represent the permit approvals for homebuilders to commence construction projects.

5.Mortgage Applications. The Mortgage Bankers Association conducts a weekly survey of mortgage applications activity at the thirty to forty largest mortgage-lending companies in the nation. The survey produces two important indices for real estate purchasers to monitor: the purchase index and the refinancing index. The purchase index measures weekly mortgage application activity to purchase homes, while the refi index measures weekly mortgage application activity to refinance mortgage loans. The purchase index is a reliable leading indicator of future home sales. A purchase index greater than 300 reflects a strong home purchase market, while an index below 200 represents a weakening purchase market.

6.Pending Home Sales. The National Association of Realtors introduces a new housing data series covering pending home sales. Pending home sales are contracts pending on existing home (similar to new home sales). Monitoring both monthly changes and year-over-year changes should prove useful. Pending sales have been estimated to be a one-to-two-month leading indicator of existing home sales.

7.Mortgage Rates. The direction and level of mortgage rates continue to be the most imp0ortant influences on housing activity today. Single-digit rates are favorable, while double-digit rates are a yellow flag in any housing market. Mortgage rates climbing by at least two percentage points in a given year raise a yellow flag for all housing markets, while rates dropping by two percentage points or more in a given year suggest very favorable housing activity ahead.

8.Housing Affordability Index (HAI). The National Association of Realtors housing affordability index measures whether or not a typical family could qualify for a mortgage loan on a typical home. A typical home is defined as the national median-priced, existing single-family home as calculated by NAR, and a typical family is defined as one earning the median family income as reported by the U.S. Bureau of the Census. Along with the prevailing mortgage rate, these components are used to determine if the median-income family can qualify for a mortgage on a typical home. A value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that a family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.

9.Months’ Supply. The National Association of Realtors monthly existing home sales report also includes data on the supply/inventory of homes. The months’ supply measures the number of months it would take to deplete the entire housing inventory of homes at the current sales pace. Historically, demand and supply for homes are in balance when the months’ supply hovers in the 5.5 to 6.5 months range. A 5 or less months’ supply reflects lean housing inventories, while a 7 or greater number reflects an excess supply of homes.

10.Price Appreciation. There are several sources home price appreciate available to potential home buyers and property investors. They include the National Association of Realtors (existing home sales), the U.S. Bureau of the Census (new home sales), Office of Federal Housing Enterprise Oversight, and the Federal Housing Finance Board. Some of the price series are really intended for housing economists and researches and not for individual buyers. My recommendation is to focus on NAR’s existing home prices, if you are purchasing an existing home and/or the Census Bureau’s new home prices – if you are purchasing a new home. Both existing and new homes have historically hovered in the 5 to 6 percent price appreciation range. Any appreciation that is above that range reflects very healthy price appreciation, and any appreciation that falls below that range reflects a softening of prices.