Tuesday, May 8, 2012

Trulia Posts Bogus Price Increase Blog

I just got an email from Trulia's "chief economist" for a blog post about rising real estate prices.

The problem with Trulia's blog is that they are basing their assumption that prices are increasing on "asking price".  Yes, according to Trulia, listing prices are up so market prices are up. 

What's even more galling are the real estate agent sheep that respond to Trulia's post with comments like "good news!" and "great blog!".  When was the last time these real estate professionals declared an improving market to their buyers or sellers by pointing only to list price?

So many factors can contribute to "asking prices" increasing, even something as simple as more luxury homes coming on the market.  You also have to wonder where Trulia is getting their "asking price" data.  Unsurprisingly, their data is not sourced.

The only thing that matters in determining real estate trends are actual sold property prices.  Asking price is irrelevant.




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