Does This Graphic Convey Meaningful Information? Or Is It Misleading?
I ran across this graphic in the December 2015 KCM newsletter. Graphic is used by permission. The information was initially published in the National Association of Realtors Economists' Outlook Blog.
I have seen similar info for years. It is surprising how often it is referenced. While the "facts" may be true at a macroeconomic level, does an agent/broker REALLY believe it is true in working with an individual seller, the microeconomic situation?
Isn't this is an example of a logical fallacy --> correlation does not mean causation? More specifically, two "events" occurring together does not mean cause and effect
The NAR Economist Outlook Blog pointed out that FSBO's median income was less than 80% (79.5%) of broker/agent assisted median income (see paragraph 4).
Perhaps FSBO homes are lower in value because they have lower median incomes. An interesting fact - the FSBO median sales price is more than 84% (84.3%) of the agent/broker assisted sales price. Would this fact lead someone to conclude that FSBO sales are marginally more effective than agent/broker sales based on median incomes?
"Statistics" are often used inappropriately. I believe the NAR is using statistics inappropriately, or more strongly stated, publishing misleading marketing.
Have you used this "data"? Your thoughts?