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[quote=Anonymous]DOM is rampantly used by realtors to inflate their own numbers and control perception. They delist and resist to reset not only the DOM but to set a new original list price. This way they can promote themselves as selling their listings within a short time period AND close to list price. When you see GCAR data claiming that properties sold within x% of list price it is total BS because of this common practice.

The DOM game screws up inventory reporting numbers too. Sellers with houses that are not selling are advised to take the house off the market and resist after the deadline period. This is to reset the DOM and reset the original price. It also gives a false impression of low inventory.

Lets look at median price now. It is meaningless when applied to a larger area.

Take a hypothetical situation where Bethesda becomes very unpopular with rich people for whatever reason. They all start listing their houses and leaving. Prices drop 1/3 of their value. The houses are selling for 1M instead of 1.5M. You would expect this to show up as a huge reduction in median house price right? Wrong. If the volume of 1M sales went up significantly in comparison with surrounding low prices houses in the 500-600s  then the median price could actually go up even though the Bethesda sellers are losing 1/3 their value. Median value is very tied to which areas in the county are driving the sales. Median does not measure appreciation in markets that have price segmentation.

Lets try price per sq footage then. This should provide more norming right? Wrong. Realtors have gotten awful in inflating square footage. They protect themselves by simply saying it is an estimate or provided by home owners. It used to be that realtors never would list sq footage that was below ground or unfinished. Not anymore.

How about looking at number of bedrooms? This is another data point that realtors fudge now all the time. It used to be that they never listed rooms that didn't meet requirements for being a bedroom but you see 4 bedroom houses listed as 5 bedrooms all the time. 1 bedrooms with dens become 2 bedrooms etc.

GCAR data sucks but realtors like it that way because they can fudge their own numbers. [/quote]

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