Many strongly correlated transition metal oxides exhibit a metal-insulator transition (MIT), the manipulation of which is essential for their application as active device elements. However, such manipulation is hindered by lack of microscopic understanding of mechanisms involved in these transitions. A prototypical example is VO2, where previous studies indicated that the MIT resistance change correlate with changes in carrier density and mobility. We studied the MIT using Hall measurements with unprecedented resolution and accuracy, simultaneously with resistance measurements. Contrast to prior reports, we find that the MIT is not correlated with a change in mobility, but rather, is a macroscopic manifestation of the spatial phase separation which accompanies the MIT. Our results demonstrate that, surprisingly, properties of the nano-scale spatially-separated metallic and semiconducting domains actually retain their bulk properties. This study highlights the importance of taking into account local fluctuations and correlations when interpreting transport measurements in highly correlated systems.