The Illinois Association of Realtors is in some serious hot water after accusations that statistics released by IAR were purposely? inaccurate.
How long has this been going on? Possibly as many as 3 years worth of housing stats are inaccurate. Right now, there is at least an understanding that January-May are incorrect.
Why does this matter? 3 Big Reasons
1. How Inflated Were The Numbers?
The size of the Realtors' errors is statistically significant, at least based on the May median price for condo sales within the city. In its official report that has now been discredited, the trade group previously said that the median price of an existing condo sold in Chicago in May was $299,000, compared with $271,150 recorded in May 2010. In fact, the median price was $243,000, compared to a year-ago price of $265,000, according to data from Midwest Real Estate Data LLC, the multiple listing service for the Chicago area.
- Mary Ellen Podmolik for the Chicago Tribune
2. What Can You Trust?
These statistics are widely reported and were used to help compile national data. The National Association of Realtors was already under scrutiny for possible data inaccuracies. These large trade organizations are relied upon for the accuracy of their reporting. If seen as propaganda pushing machines, it does not bode well for their credibility.
If not their statistics, whose then?
3. Artificially Inflated Market?
There is also speculation that these numbers were used to manipulate the marketplace by instilling a false sense of security in consumers. Did some home buyers choose to purchase prematurely based on these false numbers?
In Closing:
The details are still coming out and whether or not this was a very unfortunate oversight or someone's misguided attempted correction for the market, the implications are lasting; consumers expect transparency and accurate reporting from these groups and the Chicago Association of Realtors and MRED are working to review and correct any inaccuracies. By the time the real numbers come out, it will be in the past.
The future is what is up for grabs.
How do you think this will impact the Chicago market- if at all? How about consumer confidence?
To read the full Tribune article click here
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