Its funny how we reach conclusions. Someone found a listing with the comment “Over 40 new 2 story homes with fully finished basements…” and concluded that there was one listing showing up in inventory counts but actually 40 properties for sale – 1 listings, 40 properties.
A search based on the same comments turns up 4 listings from the same Realtor, acting for the same builder. A search based on occupancy equalling “under construction” or age equals “0” turns up 14 listings (unless you leave out “detached”, in which case you get 8 listings).
Clearly, the comment “Over 40 new homes…” doesn’t mean that 1 listing covers 40 homes. The Realtor in question is just describing the sub-division.
But, there is still a discrepancy between 14 new listings on MLS and the claim of over 40 new homes. What’s going on? A look at a website indicates that these homes are under construction. Some of the lots have plans selected for them, but the majority still don’t. You can turn up, pick the plan, write the offer, and watch your home get built.
Does that mean that MLS inventory numbers don’t accurately reflect what’s on the market? I’m sure that you could argue it either way (is a vacant lot without a plan for its house actual inventory? Maybe, maybe not).
Does it mean that MLS is manipulating the numbers to keep unsold inventory hidden? Um…wait a second, how do you hide inventory when you advertise it on the web?
MLS inventory is the total of all the active MLS listings on the service. Its not all properties for sale. Every one making up the total can be traced to an individual property, and requires at least three parties (seller, broker, agent). All three have a direct interest in having the property promoted (they don’t get paid otherwise). I’m curious how anyone can imagine the Board supresses listings.