Buying And Selling: Rewriting History

Another sunny press release from the REALTORS on how things are looking up in the markets, even as prices continue to cool. Bankrate's Greg McBride wastes no time taking them apart, particularly the usage of nonsequential data to gauge home sale prices. It's also worth noting that I can't find the original press release on the NAR Web site now--irony of ironies.

Another interesting example of the disconnect between statistics and market can be found in this piece about the slowing housing market in New Jersey:

Meanwhile, sales prices of existing homes were up by at least 10 percent in several metropolitan areas that include parts of New Jersey, including Atlantic City, the area that includes Wayne, N.J. and White Plains N.Y., greater Philadelphia and Trenton.

One analyst said the new data are a bit deceptive because they include deals that were negotiated last year.

You catch that? They were using data from 2005--housing's peak year in this cycle--for sales figures well into the second quarter of 2006. Is that shiesty or what?

Still and all, most media outlets are catching the main point--that the market fire has cooled off. No matter how the NAR attempts to clothe, cloak, or couch the data, people know what's up.

Now, of course, the question becomes what we do about it....

Posted at May 16, 2006 03:35 PM

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Another sunny press release from the REALTORS on how things are looking up in the markets, even as prices continue to cool. Bankrate's Greg McBride wastes no time taking them apart, particularly the usage of nonsequential data to gauge home sale prices. It's also worth noting that I can't find the original press release on the NAR Web site now--irony of ironies. Another interesting example of the disconnect between statistics and market can be found in this piece about the slowing housing market in New Jersey: Meanwhile, sales prices of existing homes were up by at least 10 percent in several metropolitan areas that include parts of New Jersey, including Atlantic City, the area that includes Wayne, N.J. and White Plains N.Y., greater Philadelphia and Trenton. In other markets, including the Newark area, Edison and Easton, Pa., prices were up between 6.5 percent and 9 percent. One analyst said the new data are a bit deceptive because they include deals that were negotiated last year. You catch that? They were using data from 2005--housing's peak year in this cycle--for sales figures well into the second quarter of 2006. Is that shiesty or what? Still and all, most media outlets are catching the main point--that the market fire has cooled off. No matter how the NAR attempts to clothe, cloak, or couch the data, people know what's up. Now, of course, the question becomes what we do about it....