By John Galt
December 21, 2011 – 10:10 ET
The housing disaster continues and what better week than the a holiday week to issue a report indicating that the housing depression continues in full force. The National Association of Realtors issued their monthly existing home sales report minutes ago and the revisions to the old data plus current month indicates that all the efforts by both the Bush and Obama administrations were useless and did nothing to salvage a sinking ship. From the report (available at this link):
While month over month there was an increase of 4% and 12% year over year with an annualized number of sales at 4.42 million. However that is based on revised figures which begs the question as to the accuracy of those numbers if they haven’t been correct over the last four years.
33% of all contracts tendered are cancelled, a number which further diminishes the number of sales reported from 4.42 million to approximately 2.96 million, a number which will extend the amount of time to wind down and eliminate existing inventory.
The revisions were most dramatic in 2008 with an almost 17% revision, 16% in 2009, and 15% in 2010. Thus the question about the number of cancellations must be brought forth as a major marker because the report does not mention if that data was under reported also, versus the over reporting of existing home sales.
For comparison, here is the spread sheet snap shot from the National Association of Realtors before the report, and the revised version posted after the press release:
Previous report through October 2011 before revisions
(click to enlarge)
Revised report with data through November 2011
(all charts and data from the National Association of Realtors website)
Needless to say, being in the realty profession probably is not a great idea right now as the Great Real Estate Depression rolls on.