The Wall Street Journal reported yesterday that a housing trade association is looking into the possibility that data that it had previously released may have underestimated the collapse of the housing industry.
The National Association of Realtors may have over-counted home sales dating as far back as 2007 and may have overstated home sales by as much as 20 percent.
Why is this important? An over-count of home sales could possibly mean that there may be a bigger backlog of unsold homes and as a result it could take longer for the nations housing sector to climb out of its deep plunge which in turn put an added slowdown on the broader economic recovery.
The crash of U.S. housing market, which started in the United States and has now spread around the world, was the main factor of the economic meltdown that began in 2007. Unfortunately, the nations economic recovery has been held back by the slow return of housing market.