>>> crisis that started in 2007 was even worse than we realized. how is that possible? hole prices, or home purchases in 2010 were revised downward by almost 15%. purchases in 2008 and 2009 were revised downward 16%. that translates into a 3.5 million fewer homes sold since 2007 than originally stated. joining me now, real estate and foreclosure attorney sherry, author of foreclosure nation. thank you for your time.
>> reporter: sure. thanks for having me.
>> why are we getting these amended numbers? is that the right way to describe them?
>> reporter: recasted numbers.
>> why are we getting them just now?
>> reporter: well, this came out last february competing statistic provider noted some differences in their numbers. and started to question the national association of realtors ' methodology in computing the existing hole sales. remember, they're based on an estimate, based on a sampling of data reported by actual realtors.
>> so oxley, though, and i saw the story first reported on "nightly news" last night. it is everywhere today. the headline is it is worse than we first thought. do you not see the headline that way?
>> reporter: well, the numbers certainly show that. from a real life perspective, mostly experts look at a variety of indicators. and even once we have them, it is climbed of funny. we actually spent relatively little amount of time on them. we spend a lot more time digging behind the numbers because there's so much that we all know any way the numbers don't tell us. there are all kinds of variables they don't reflect. all kinlds of i haddio sink ra r. home buyers were for a home. if you need a home and you have the money you won't not buy a home because these numbers retroactively have been revised down. you'll go look at a home and you're more focused on the prices in a particular neighborhood. same thing with developers. most developers need to have a local market study done which is very extensive and it is not based on this information any way.
>> this report just quickly says that 3.5 million fewer homes were sold in 2007 than originally stated. so does that have no ill bag years later on the housing market ?
>> well, it certainly does. at least temporarily it will create a blip. it is giving us more reason to doubt. it will give us more reason to doubt numbers moving forward. how do we know the number are accurate. we already know the number of defaults and foreclosures that are reflected are probably underestimated. certainly the am of shadow inventory is underestimated as is negative equity . when you're dealing with this, you have all kinds of methodology issues. let's face it. banks and homeowners who don't plan on paying their mortgages are not very transparent and koomtive. we can look at the big picture . back to the bubble and we know that the correction just is not in the same scope as the excess was. we had 27 million loans, risky loans made. of that only about 6% have been addressed. so we haven't work our way through this no matter what the indicators say.
>> thank you very much. great having you on. thank you.
Source: http://video.msnbc.msn.com/newsnation/45755266/
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