The "Number of Sales" shows the demand, or how many properties closed escrow. Is the number of sales increasing or decreasing?
Source: MLS (Multiple Listing Service)
Our opinion of what it meansJanuary 2012: There were 159 sales in December, the most December sales reported since December 2004. 2004 was the peak of sales in the last decade, with regard to the number of sales. December sales were up 24% from 128 sales in December of last year.
BACKGROUND: A 'sale', in this context, means a close of escrow. July sales mean houses that closed escrow in July, but probably went under contract in May or June. The number of sales is seasonal. Each year, January and February have the fewest number sales, because people are usually too busy to shop for homes during November and December. The highest number of sales is in June or July, because more buyers shop for homes in the summer. Note this repeating annual pattern in the above graph.