Categories: OLD Media Moves

Don't trust industry data with real estate

Marek Fuchs of TheStreet.com wants to know why business journalists write stories about the real estate market using data from industry organizations.

Fuchs wrote, “Data from trade associations, no matter how convenient and digestible they make their statistics to the business media, must always be considered with a special degree of caution.

“But The National Association of Realtors, which has caught plenty of reamings before, is known as one of the most partial. It has, for example, been busily marketing the real estate industry recovery since the moment its troubles began. So if you believe its statistics are givens, you’ll have the wrong idea on everything from builders like Lennar and Toll Brothers to the economy at large.

“Which brings us right to the edge of Tuesday’s blast zone. Here is the headline of the Journal story — a front page job no less — that summarizes its flawed thesis well: ‘Wave of Foreclosures Drives Prices Lower, Lures Buyers: Oversupply Triggers Lenders’ Fast Sales; Mr. English Bids.'”

Read more here

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