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CoreLogic claims that NAR sales stats are inaccurate

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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.

The American Genius is news, insights, tools, and inspiration for business owners and professionals. AG condenses information on technology, business, social media, startups, economics and more, so you don’t have to.

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26 Comments

26 Comments

  1. Matt Kelly

    February 16, 2011 at 4:41 pm

    Perhaps they have different definitions of “Sold.” It could happen.

  2. 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.

  3. 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.

  4. Jason Sandquist

    February 17, 2011 at 11:14 am

    At least someone is keeping them honest…

  5. Matt

    February 17, 2011 at 4:12 pm

    Is this really news, or is Corelogic just looking for some press?

  6. 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

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Austin

Austin tops the list of best places to buy a home

When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?

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Looking at the bigger picture

(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).

That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).

They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.

“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”

Click here to continue reading the list of the 12 best places to buy a home…

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Housing News

Average age of houses on the rise, so is it now better or worse to buy new?

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.

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aging housing inventory

The average home age is higher than ever

(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.

With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.

Prices of new homes on the rise

Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.

Click here to continue reading this story…

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Housing News

Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?

The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.

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zillow move

zillow move

Why Realtors are vulnerable to these rapid changes

(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.

Note: We’ll let you decide which company plays which role in the image above.

So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.

1. Zillow poaches top talent, Move/NAR sues

It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.

Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.

2. Two major media brands emerge

Last fall, the News Corp. acquisition of Move, Inc. was given the green light by the feds, and this month, Zillow finalized their acquisition of Trulia.

…Click here to continue reading this story…

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