Massive Downward Revisions Imminent: National
Association of Realtors Miscounted Millions of Home Sales Over Last
by Mac Slavo: This
Is What Your ATM Will Look Like During a Bank Panic
Just when you
thought you could trust the National Association of Realtors, a
new shocking report from the NAR itself says that they have miscounted
the amount of existing homes that were sold for the last five years.
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.
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.
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.
hasnt revealed exactly how big the revision to home sales
will be, the agencys chief economist Lawrence Yun said the
decrease will be meaningful.
the real estate business, this means the housing markets
downturn was deeper than what was initially thought, Yun
analysis firm CoreLogic claimed earlier this year that the NAR may
have misrepresented sales numbers by as much as 20%. It turns out
CoreLogic was right. The NAR has now admitted that they made a mistake
in how their data were counted. In the last twelve months 4.9 million
homes were sold in the U.S. Over five years were looking at
around 20 million homes, which suggests that the NARs mistake,
if CoreLogics estimates are correct, may involve up to 4 million
home sales that never happened or were double counted.
mistake may deserve the benefit of the doubt, given what has transpired
in the financial, economic and real estate sectors wed be
remiss if we didnt mention that NARs realtors, mortgage
lenders, and banks likely benefited from such a massive padding
of the numbers. Off by a few thousand? OK, well give that
to you. Off by several million? That suggests this was no mistake
at all, but rather, an intentional fraudulent act designed to keep
optimism up, home prices up, and revenues coming in to sales agents
and the NAR itself.
data have been, in part, used as evidence of economic recovery.
We now learn that the numbers are pure conjecture.
no reason for concern, however. Even though home prices undoubtedly
benefited from the false perception that millions of homes were
being sold and the market was bouncing back, Reuters reports that
this latest revelation will have no negative impact on the market.
benchmark revisions will be published next Wednesday and will
not affect house prices.
We were worried
there for a minute, but apparently theres nothing to see here
and we can just move along.
from SHTF Plan.
Slavo [send him mail] is a
small business owner and independent investor.
© 2011 Mac Slavo
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