According to CoreLogic the number of homes sold as reported by the National Association of Realtors could be off by 20% over the past 5 years.
Heads should roll, but they probably will not over this.
The National Association of Realtors said a benchmarking exercise had revealed that some properties were listed more than once, and in some instances, new home sales were also captured.
“All the sales and inventory data that have been reported since January 2007 are being downwardly revised. Sales were weaker than people thought,” NAR spokesman Walter Malony told Reuters.
“We’re capturing some new home data that should have been filtered out and we also discovered that some properties were being listed in more than one list.” via Reuters
My biggest problem with this is that it is the fox watching the hen house. You have an advocacy group reporting declining numbers that affects their dues paying members. It was in the best interest of the NAR to be “off” a little bit each month to make the numbers look better.
Just as the Labor Department reports the unemployment numbers each week and then quietly revises them upwards after the news cycle is over, so it seems that the NAR is doing the same with the housing numbers.
And what a surprise, they are reporting this during the Christmas lull so it can be old news when the selling season starts.
{ 17 comments… read them below or add one }
Im an agent in Florida and our MLS shows properties that are shortsale in contract still as “active” which makes it look like there is a lot of inventory on the market, which makes the media report we have a lot more inventory than whats really available. Our market is actually pretty good and quiality properties are hard to find.
This is not surprising, who can you trust in today's housing crisis and government collapse.
As they say, "truth is to be more treasured than gold", and this is a classic example of that! This article is a reminder of how the powers that be possess too much power, and they actually control critical information as well as "swaying" the market artificially. This is criminal. Thank you for this article!
this blog is really nice ……now a days real estate market is pretty good
So what’s the alternative? Replace the (allegedly) crooked NAR with a government organization? Government intervention is decried as inefficient and un-American while free-market agencies lie and cheat in an effort to make their failing industries more attractive for gullible investors – what’s left?
It is always safe to say that the real estate market is ever changing. Time is of the essence and if you want to be successful in either buying or selling you must put in mind that a good timing is everything.
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The real estate market fluctuates. If 2011 is not that good, let's look forward to 2012. Some are predicting that in the last quarter of 2012 there will be an improvement in the real estate market condition.
Change in the real estate market is imminent. If 2011 ended to be not the way we want it then it will be an advantage for 2012, why? Because many will try every possible way to make it a good turning point and aim for better results. It's an engine-starter. The year is refreshingly young for a favorable approach and all it takes is a single door-knock. To me, the fruit will be good to reap by mid of second quarter.
Oh! I will be hoping for the same Patricia. With the ever-changing nature of the real estate market, I am fervently hoping that things will turn better with mortgage requirements a little bit loosened as I am planning to buy a home this year!
Thanks for this nice post, Thom
I too am praying for the same Patricia! I am planning to buy a home this year and if things would be favorable, this plan has great chances of becoming a reality!
After reading your article I think I have learned some valuable information that I can use in my business. I recently started the first discount Real Estate company for buyers in Broward county Florida. What's nice is the only money we're giving away is our own, unlike other Real Estate companies which cut the Realtors commission on both sides in order to get the listing. I could use some advice on creating the right type of website. So any comments would be appreciated and if any of your readers are looking to purchase Real Estate in Broward I hope they'll visit our website.
I've seen in the Vancouver WA market where a good number of homes are sold twice in one year (and counted twice). The most common are damaged REOs, followed by damaged Short Sale properties — homes that were not necessarily habitable or, required substantial renovation. Should these houses sold twice in one year be counted as one sale to a real occupant or, two sales?
Great piece of interesting information Thom! As always, the real estate market will continue to be like a mystery wherein change is something that you can consider permanent. Just like life!
Guess this is to be expected with the way things are going. But I still agree with some RE people hoping for positive things to happen in mid-2012!
Thanks for this nice post!
The real estate market has been bad for 2011. And as the year 2011 leaves, new hope was found and according to the survey 2012 may bring more sales as the housing market is beginning to come back.
Just browsing in the internet I came across this post. Seeing the graph going down in the real estate market makes me think that many people are walking away with their mortgages and maybe just renting a home is the solution, obviously much cheaper. I agree with the previous comments that 2012 will bring back real estate market. Let’s think positive!