The National Association of Realtors (NAR) is warning that the U.S. housing market collapse is even worse than first thought.  On December 21, NAR will release new/revised data on the housing collapse going back to 2007.

Lawrence Yun, chief economist for NAR, said that real estate analysts have made incorrect assumptions when they counted existing home sales in the Multiple Listing Service (MLS).  The assumptions in counting home sales made things look better than they really are: “For the real estate business, this means the housing market’s downturn was deeper than what was initially thought.”

Yu also said the MLS, and some of the other NAR counts, were done using data from 2000, not up to date data!

Another problem is that some real estate markets overlap in reporting their sales. This means a sale in one market could, on paper, look like two sales in two markets: “Colorado Springs has their own database, but because the Denver market is nearby they may also list that home in the Denver database, so when the home gets sold, both Denver and Colorado Springs will say sales rose, so that’s genuine double counting.”-Lawrence Yu

For some reason it took until a recent meeting of NAR officials, this year, to realize the reporting mistakes.