posted on Dec, 21 2011 @ 09:38 AM
US Housing Market Was Artificially Inflated By 14% In 2007-2010 NAR Reports
Existing-home sales downwardly
Just the headlines for now:
■ 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
Thank you NAR for proving what everyone knew: that the US housing market is one big lie. 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
■ 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.
Odd: no mention of the primary reason for the "rebenchmarking", namely that the NAR is nothing but an advertising front for the US housing industry.