Recent reports in the media have been jumping at statistics provided by the Realtors Association in California that showed home sales were improving ‘significantly’.
But, today the California Association of Realtors disclosed they made a mistake. The numbers they reported for home sales in the San Diego area were sharply ‘overstated’.
The California Association of Realtors expects to make sharp downward revisions in its recent monthly reports of soaring home sales in the San Diego area, Robert Kleinhenz, deputy chief economist of the trade group, said in an interview.
The revisions are likely to be announced in late July, when
the Realtor group reports home sales for June. The problem resulted from a glitch in data from a multiple-listing service in San Diego, Mr. Kleinhenz said. He said a change in computer systems used there resulted in incorrect data being sent to the Realtor association over the past year or so.[...]The California Realtors have reported that San Diego sales in April were up about 63% from a year earlier. Mr. Kleinhenz said that is expected to be revised downward to a gain of about 20%. For May, the group reported an 89% increase in sales in San Diego; that will be slashed to about 6.5%, the economist said.[...] (WSJ)
I still argue that many of the homes being purchased in California (and in other states) are foreclosure properties, and this is distorting the ‘organic‘ sales figures drastically . Let us not forget the shadow inventory of homes that has yet to appear on the market as banks and other financial institutions are holding back on dumping homes onto the market place.
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