Published November 6, 2024

November 2024 - STAT -Understanding False Closes & Data Accuracy

Written by Katie Evans

November 2024 - STAT -Understanding False Closes & Data Accuracy header image.

COMMENTARY by James Marcus
This month, we thought we would answer a common question: Why don't market stats come out on the first of the month? We've discussed how the number of working days in a month can skew market stats, but there is another abnormality that can trip up market data devotees—false closes.

If you're here reading STAT, there is a good chance that STAT is not your only report. It's also likely that you pull your own market data and reports. False closes are the reason STAT never comes out before the 5th of the month.

Most pending listings auto-close on the closing date that is entered when the status is updated. Often, the last day of the month is chosen because agents are making educated guesses about when a property will be recorded, and it serves as a convenient mental boundary. If an agent forgets to update this date, the listing will false-close and will need to be moved back to pending.

Since agents commonly select the last day of the month, there are times throughout the year when false closes can skew market stats if pulled on the 1st or 2nd of the month. Most of these corrections actually happen on the first working day of the new month, not the first calendar day.

A small number of MLSs do not have an auto-close feature, but this creates new headaches. There isn't a perfect solution—just some food for thought.

ARMLS PENDING PRICE INDEX