January 26th, 2011
Econintersect: Analyst Steven Hansen maintains that the 17.5% increase in new home sales reported today by the U.S. Census for December (vs. November) is distorted by inappropriate seasonal adjustment. Hansen determines the increase is substantial from historically low levels, but he argues that the increase is closer to 10%. Follow up:
Follow up:Whereas the Census Bureau report states that the new home inventory has been reduced to 6.9 months. Hansen has determined that the inventory is 8.7 months without using the distorting effects of improper seasonal adjustment.