On Wednesday the Census Bureau released its new home sales report and the National Association of Realtors released its Pending Home Sales Index. Both data series missed Wall Street estimates by a country mile, with new home sales showing a slight gain over September and the Pending Home Sales unexpectedly dropping from September. With regard to the reliability of the Census Bureau data, John Williams of Shadowstats.com explains:
A lack of stability continued with the Census Bureau’s headline monthly reporting of new-home sales in October…headline reporting remained extremely unstable. Sudden initial headline surges in monthly activity appear to provide no more than one-shot media hypes, which disappear with the next month’s revisions.
In other words, the Government’s estimates for new home sales is unreliable.
This post was published at Investment Research Dynamics on November 27, 2014.
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