According to CoreLogic’s Housing and Market Trends Report, the National Association of Realtors’ existing home sale reports for the past ten years have been “overstated,” and that in 2010, NAR overstated sales 15% to 20% higher than actual sales.
NAR reports home sales rose in 2009 from 2009 and fell only 5% in 2010 while CoreLogic reports a 12% drop from 2009. CoreLogic’s report states that “There are several reasons for the divergence, including benchmarking drift, more sales going through MLS systems due to consolidation and a lower share of for sale by owners (FSBO) home sales.”
CoreLogic continues by stating “Sales remain extremely low relative to the last decade as sales last year were more than 50% below the level in 2005 and about 33% below the level in 2000.”
The report states that their sales data covered 85-90% of all of NAR’s home sales data but in 2006, NAR’s sales data diverged from CoreLogic, MBA, HMDA and the Census, “and that trend has continued and become more pronounced through 2010.”
The National Association of Realtors today released a Q&A about their data and revealed that to calculate their numbers, they gather “sales data from numerous MLSs, with a reporting sample of about 40 percent.”
Responding in kind to the report, NAR notes that CoreLogic data “comes from courthouse recordings. It makes some assumptions about non-covered areas. Because of improved electronic recordings, it claims to capture more data and more quickly than in the past. Right now, CoreLogic and NAR data differ. However, it is unclear which is more accurate. Only a new benchmarking with 2010 Census can resolve the issue.”
Data accuracy has been a hot topic in the real estate industry for some time and awareness has been heightened by non-traditional media as Realtors and consumers in the research era seek the best data possible.
AG is not affiliated with NAR or CoreLogic.
Thomas L Hutchinson via Facebook
February 16, 2011 at 4:17 pm
It’s going to be interesting how this plays out and who’s “stats” are more “accurate”. As my statistics professor once said…”lies; DAMN lies!!”
Thomas L Hutchinson via Facebook
February 16, 2011 at 4:17 pm
It’s going to be interesting how this plays out and who’s “stats” are more “accurate”. As my statistics professor once said…”lies; DAMN lies!!”
Michael Fontana via Facebook
February 16, 2011 at 4:19 pm
What was it Mark Twain said about Liars, Damn Liars, and Statisticians?
Michael Fontana via Facebook
February 16, 2011 at 4:19 pm
What was it Mark Twain said about Liars, Damn Liars, and Statisticians?
Anonymous User via Facebook
February 16, 2011 at 4:32 pm
Part of what I think may be skewing data is this: Both MLS services that I belong to count closed leases as units sold. We have to manually strip out the rentals when running comparable sales reports for our clients. Are the MLS organizations doing that when reporting to NAR? I have no idea.
Anonymous User via Facebook
February 16, 2011 at 4:32 pm
Part of what I think may be skewing data is this: Both MLS services that I belong to count closed leases as units sold. We have to manually strip out the rentals when running comparable sales reports for our clients. Are the MLS organizations doing that when reporting to NAR? I have no idea.
Matt Kelly
February 16, 2011 at 4:41 pm
Perhaps they have different definitions of “Sold.” It could happen.
Rob Regan via Facebook
February 16, 2011 at 6:55 pm
Our membership dues at work.
Rob Regan via Facebook
February 16, 2011 at 6:55 pm
Our membership dues at work.
Thomas A B Johnson
February 17, 2011 at 1:15 am
This is probably a shot at the NAR data. Core Logic declaring war on the source of RPR’s data. If correct, NAR blew $20 million on a pretty website with faulty data, unless of course a 20% error is insignificant. Still a “B” right? Also Core Logic apparently is paying MLS associations for their listing data feeds. That is a pretty powerful pitch: better data for your members and we will pay you for it.
travis
February 17, 2011 at 8:28 am
This is sad to see. With technology where it is, there is no excuse to use a 40% sampling from selected MLSs. Reports like this should be based on actual data from all MLSs. Another example of why we should not pay that much attention to national reports. Concentrate on our markets and the data provided by our local MLS.
Jason Sandquist
February 17, 2011 at 11:14 am
At least someone is keeping them honest…
Matt
February 17, 2011 at 4:12 pm
Is this really news, or is Corelogic just looking for some press?
Dunes
February 19, 2011 at 1:29 pm
“Is this really news”
A Possible Discrepancy of over 1,000,000 Sales for the year..(A million to many)..Then use that Data for Press Releases, Economic & Housing Predictions/Forecasts, to support Lobbying efforts, Market Overview, Thousands of Blogs, articles ect. by members using the Data to tell LEADS things are looking up yadda yadda……
Member Dollars at work……
Yeah,,It’s Big News to The Public..Those potential customers on the Fence considering your advice it’s a good time to buy & who now have in their minds even more of a Reason to lump you all together in the BS File…..Right or Wrong
Yeah it’s News..Sad IMO if ya don’t see that