We examine the behavior of broker quotes in Korean housing markets by comparing two broker quotes based indices and an apartment price index we build using the actual transaction prices, which became available since January, 2006. Broker quotes may differ from actual prices depending on the housing market conditions. Specifically, we test the hypotheses: (1) price increases will be exaggerated when measured using broker quotes, in bullish housing markets; (2) in a down market, broker quotes show far less price reduction than implied by transaction prices. We find that indeed broker quotes distort the prices in both the up and down markets. Specifically, (1) price increases are greater when measured using broker quotes, in an up-market where the transaction volume drops; (2) in a down market, broker quotes show far less price reduction than do transaction prices. We also document that the broker quotes based indices are highly smoothed as shown by the lack of volatility in contrast to the repeat sales index and broker quotes lag actual prices by about two months. Our results suggest that broker quotes have the potential to exacerbate the upswing in an up-market and to overstate the collateral values underlying mortgage loans in a down market.