Sales of new homes jump! ... Right?

What the numbers from HUD and the U.S. Census Bureau mean
  • Sales of new homes are based on contracts written, not closed sales. The rate of cancellation is high and stupendously variable.
  • The figure to look for in each of these reports: the year-over-year. The big news in this report really is big, almost 24 percent ahead of 2015.
  • However, odd on its face: construction of multi-family homes (apartments and condos) is slowing almost as fast.

In this week’s screeching headlines: “Sales of New Homes Reach Eight-Year High, Point to Stronger Economy.” April did have a big month, maybe even a trend-changer, but this is an election year — a crazy one — and everything needs a second look.