Rise In New Home Sales Sends Mixed Signals
March 25, 2009 by Tisa Silver
Filed under Investing
The Commerce Department reported two positive pieces of economic data today. In February, new home sales rose 4.7 percent and durable goods orders rose 3.4 percent.
These figures are positive, but I find them a tad frustrating because they always come with qualifiers.
Let me explain.
The new home sales figure is supposed to measure the sales of newly built, single-family homes.
According to MarketWatch, this figure came in at a “seasonally adjusted annual rate” of 337,000. This makes for positive news since economists were expecting 323,000 units.
Why it sends mixed signals:
1. The number could be inflated since it includes canceled contracts.
2. Last month’s activity and median sales price are …read more
