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2 years ago

What are the cons of using new residential sales/new home sales as a economic indicator?

Business

1 answer:

rodikova [14]2 years ago

8 0

Answer:

New home sales and existing home sales are released each month at about the same time. Many comparisons are made between the two series, but before doing any comparisons, one must be aware of some definition differences that affect the timing of the statistics.

The Census Bureau collects new home sales based upon the following definition: "A sale of the new house occurs with the signing of a sales contract or the acceptance of a deposit." The house can be in any stage of construction: not yet started, under construction, or already completed. Typically about 25% of the houses are sold at the time of completion. The remaining 75% are evenly split between those not yet started and those under construction.

Existing home sales data are provided by the National Association of Realtors®. According to them, "the majority of transactions are reported when the sales contract is closed." Most transactions usually involve a mortgage which takes 30-60 days to close. Therefore an existing home sale (closing) most likely involves a sales contract that was signed a month or two prior.

Given the difference in definition, new home sales usually lead existing home sales regarding changes in the residential sales market by a month or two. For example, an existing home sale in January, was probably signed 30 to 45 days earlier which would have been in November or December. This is based on the usual time it takes to obtain and close a mortgage.

Effective with January 2005, the National Association of Realtors created a new monthly series to overcome the lagging effect of the existing home sales definition. This new series is called Pending Home Sales and is based on sales of existing homes where the contract has been signed but the transaction has not been closed, making it roughly equivalent to the new home sales definition. Monthly estimates are expressed as an index where the year 2001 has been set to equal 100.0.

Explanation:

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Freer trade, advances in information technology, and more global customers are pressuring many large global companies to:

Volgvan

Firms are often involve in different kinds of trade. Freer trade, advances in information technology, and more global customers are pressuring many large global companies to shift from functional structures to geographically based divisionalized structures.

There are great advances in information technology (IT). Firms often get benefits of free trade in IT as they are able to expand their business into other different new areas with less effective charges.

FTA is known to be very good to optimal sharing of resources in the region as it helps to boast the efficiency of economic activities and also increase the stock of a country's technology.

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brainly.com/question/3520350

7 0

2 years ago

N 2016, marvin, a cash basis taxpayer, took a $2,000 itemized deduction for state income taxes paid. this increased his itemized

notka56 [123]

Answer:

stop cheating

Explanation:

4 0

2 years ago

Blue Corporation is projecting a cash balance of $36,450 in its December 31, 2016, balance sheet. Blue’s schedule of expected co

NeX [460]

Answer and Explanation:

The Preparation of cash budget for the first quarter is following below:-

Cash Budget

Particulars Amount

Cash balance Beginning $36,450

Add: Receipts

Total Collection $224,775

Sale of equipment $3,645

Total receipts $228,420

Total cash available $265,870

Less: Disbursements

Direct material $52,245

Direct labor $85,050

Manufacturing overhead $42,525

Selling and

administrative overhead $54,675

Purchase of securities $17,010

Total Disbursements $251,535

Available excess available

cash over disbursements $14,335

Financing

Add: Purchase of securities $17,010

Less: Repayments -

Cash balance at ending $31,345

So, to reach at ending balance we simply added the purchase of securities and ending cash balance.

3 0

3 years ago

The Human Resources department of Superior Catering conducted a training workshop on setting and achieving organization goals. D

Harman [31]

Answer:

The goals are not time-bound, there is no specific date as to when they should be achieved.

Explanation:

SMART goals should be:

Specific
Measurable
Achievable
Relevant
Time-Bound: how long will it take DeJohn and his managers to accomplish their goals, e.g. six months, one year?

7 0

3 years ago

Why might a person decide to take advantage of a non-installment credit offer?

Korolek [52]

A person would take advantage of a non installment credit offer if there was no interest charged on on the loan. Many of these offers will not charge interest on the loans if the loan is paid off in a short amount of time. Usually within 3 to six months of the time the loan is started. These offers are usually for appliances and furniture. You can always ask the store you are visiting if they have these offers available. If you don't pay the loan off within the amount of time, you are then charged the interest and have a longer amount of time to pay the loan off.

8 0

3 years ago