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 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.
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.