New home sales statistics are bogus. I know a lot of you do not like to hear numbers because it upsets your day, but in not hearing the truth, or hearing the wrong numbers does it ever upset you? Last week I had started to write a Blog, but with all the errors on ActiveRain, the idea was lost until I thought about it again today. There was an interview on CNBC with Bob Toll of Toll Brothers Builders at the Bank of America Builders Conference last week. He was very disturbed at the Commerce Dept. news that new home sales had picked up, but when he looked at the numbers they were all wrong. He personally called up the Commerce Department to question the numbers, and asked them if they had included cancellations of new homes contract...they replied "No!" They never include them. His comment was you should because our cancellations are running much higher than the normal 4-7% and have been holding at over 30%. 30% is a major mis-statement and overstatement of sales numbers. Some would call it a lie! It is interesting that a major builder gets it, and the government wants to spin a different picture.
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