Housing Crash Might Have Been Underestimated

A closely watched housing data index might have underestimated the extent of the market crash of 2007, according to The Wall Street Journal. The National Association of Realtors (NAR), which releases its existing-home sales monthly, is currently investigating whether it over-counted the number of sales going back as far as 2007. An outside group says the NAR may have over-counted those sales figures by as much as 20%. The Wall Street Journal reports that a downward revision wouldn't affect home-price numbers, but it could indicate "the housing market faces a bigger overhang in inventory, given the weaker demand." If it is found the NAR's figures were incorrect, a downward revision of those figures could be issued this summer, the newspaper reported.

January's existing-home sales figures were released today.