I GUESS THINGS WERE WORSE THAN WE THOUGHT … HMMMMMM! This just in …..

• EXISTING U.S. HOME SALES REVISED DOWN BY 14% FROM 2007-2010
• EXISTING HOME SALES REVISED DOWN BY 15% IN 2010 TO 4.19 MLN

This SHOCKING news proves — once and for all – what everyone in the know, intuitively suspected: What you see, when it comes to the US housing market, and the numbers published regarding its strength (or lack-thereof), is not always accurate. And next: here come the historical GDP revisions.

The three charts that matter:

And the reasons for the “rebenchmarking”

• Fewer FSBO home sales and more REALTOR®-assisted home sales (e.g., no net increase in home sales in a case where 80 MLS sales and 20 FSBOs shifts to 90 MLS sales and 10 FSBOs)
• More Homebuilders seek REALTOR®-assistance in listing properties on MLSs (More MLS count even though there is no increase in existing home sales)
• Flipping of a home (re-sell within 12 months)
  • Re-benchmarked figure excludes the second sale, while they are counted as twice in MLS count
• Enlarged MLS geographic coverage
  • Some of the home sales are not an increase in home sales but are just due to enlarged sampled areas
• Double counting as one single property is listed in two or more MLSs
  • Example: a home in Colorado Springs is listed in MLS in Colorado Springs and is also listed in MLS in Denver.

Here’s the full document that provides the NAR’s official explanation. Talk about spin!

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Posted in Housing, Residential Real Estate, Uncategorized | One Comment