Cendant CEO Questions NAR Housing Statistics
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Henry Silverman, the CEO of Cendant Corporation, parent company of Century 21, Coldwell Banker, ERA Real Estate, and Southebys International Realty, makes an interesting observation on how the numbers are compiled by the National Association of Reators (NAR) for their monthly market analysis.
While the National Association of Realtors released existing-home sales data this week that showed an improving market from February to March, Silverman said he is unconvinced that the market is getting better at this time. “I’m not sure the (association) data is terribly relevant. They typically sample only 20 percent of MLSs and then they adjust those numbers with a number of variables. I think that with 30 percent of the market — as we believe we have at least on price and size in terms of dollar volume — statistically you could argue we are the market.”
He added, “So our results are more likely to be accurate as to the market than whatever (the association) is projecting or … has reported.” via Inman News
With the market in flux, and the huge discrepency in how different regions are performing, this statement by Henry Silverman makes one wonder. With a call out by such a leading figure in the real estate business, the NAR should release the whole methodology of the survey so that those interested could validate it. With the low cost distributions system of the internet, this is the best and most honest way to show that the marketplace is being reported properly.
Hat tip to one of my favorite bloggers for finding this article, the Northern New Jersey Real Estate Bubble. While passionate about his target market and the potential impact of the housing bubble hitting it, Grim also does an outstanding job of finding the meat in a story as oppose to only the sizzle. If you are not reading his blog and you are interested in real estate, you are missing out,
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Comment by Tonny on 27 April 2006:
This is a great bit of insider knowledge. It is appalling that the NAR can get away with legally publishing such false information and setting the whole market up to be blind sided this is a great bit of insider knowledge.