National Association of ... Really Really Good Liars

Housingwire.com reports that pending home sales levels have fallen significantly since this time last year, according to data released by the National Association of Realtors (NAR). The NAR report on the same data is titled “Pending Home Sales Rise, Wider Gains Anticipated….”

So where’s the discrepancy? How can the exact same data tell one group that things are getting worse while another group sees it as an improvement? The answer is all in how you look at it. While the NAR points out that their pending sales index was up 5.3% in June relative to May, Housingwire.com thinks it’s more appropriate to compare apples to apples and compare June data to June data. This comparison shows a 12% decline from this time last year.

Who’s right? In this case, we strongly agree with Housingwire. Home sales always make a move up in the summer months, simply as a result of cyclical pressures on the market. By comparing May to June data, the NAR has successfully pointed out this fact. However, in claiming that this increase represents a reason to project overall improvement in the housing market, the NAR is grossly over-exaggerating the importance of that particular statistic. Such spin is commonplace for the NAR, which has been propagating the “buyer’s market” fallacy since the credit crunch began by whatever means available to it. (witness the NAR's chief economist Lawrence Yun's insistence the turnaround is just around the corner ... since January 2006.)

In the uncertain waters of today’s real estate markets, it’s hard to know who to turn to for objective information and analysis. Many in the media will stake a claim to objectivity, but such claims are often exaggerated at best and ludicrous at worst.

In reality, objective information is not easily found and does not come cheap. In some cases, however, it is easy to see when a particular organization’s interests do not align in the least with anything remotely approaching objective analysis. This is clearly the case with the NAR, who’s analysis and reports should be avoided like the plague by anyone actually interested in the true state of the housing markets.