Markets & Economy

Is TRID responsible for existing-home sales drop?

NAR's latest numbers show a big fall in November
  • November 2015 was the slowest period in 19 months for existing-home sales.
  • “It’s possible the longer timeframes pushed a latter portion of would-be November transactions into December,” said NAR's chief economist, Lawrence Yun.

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If you think it's taking much longer than usual to close on a house this time of year, you aren't alone -- and what's more, those extended closing dates could be affecting home sales data. The National Association of Realtors (NAR) reported this morning that its November 2015 existing-home sales data show that November was the slowest in 19 months of transactions. And in its news release, NAR stated that "some of the decrease was likely because of an apparent rise in closing timeframes that may have pushed some transactions into December." This "rise in closing timeframes" can be attributed to TRID (TILA-RESPA Integrated Disclosure), a new set of regulations imposed on the real estate industry in early October. November home sales were down 10.5 percent month-over-month and 3.8 percent year-over-year. This is the first year-over-year increase since September 2014. “Sparse inventory and affordability issues continue to impede a large pool of buyers’ abilit...