Could market data be manipulated?

Discussion in 'Financial Cents' started by turbohardtop, Mar 25, 2009.


  1. turbohardtop

    turbohardtop Monkey++

    So the data is out for February new home sales. It has unexpectedly risen while analysts expected it to go down. It is possible that this data is manipulated.
     
  2. RouteClearance

    RouteClearance Monkey+++ Site Supporter

    Actually no, what is happening is a lot of those socalled sales were in fact "Fire Sales" of foreclosures and distressed properties being bought up for well under market value. Even though I have not checked personly, I have a feeling that new home sales along with new housing starts are still in rapid decline. We are nowhere ner the bottom.
     
  3. Capt.Reynolds

    Capt.Reynolds Ya...NO WAIT!!!!

    YES!







    (RouteClearence is right, it's just more fun to resoundingly agree.)
     
  4. ghrit

    ghrit Ambulatory anachronism Administrator Founding Member

    Hm. All this time I thought "new home sales" referred to homes that had not yet been occupied, rather than to new sales of homes of any age. Still, I think RT is correct about properties being dumped.
     
  5. SLugomist

    SLugomist Monkey++

    I have a good friend that still has a job with a major home builder. They just barely met their Feb numbers. like +1 to 3. They are -7 for march with less than a week to go. So come mid to late April when these numbers come out, we'll see what happens. Me thinks if market goes up then a rig job. Plus Aren't we near 1Q earnings? Can't wait to see those.
     
  6. dragonfly

    dragonfly Monkey+++

    Strange...not many sales here in houses of new or older...But a helluva boom goin on in land!
    Gee, wonder what that could mean....?
    Formerly, an acre of desert scrub was only $125.00 an acre, today it is going up and now, at the rate now of: $4,000.00 an acre.
    Makes ya sit up and take notice don't it?
     
  7. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    If the data related to new home sales, then it is simply the builders dumping as they realize when the foreclosure speed increases, the will never sell their homes so they lower prices and firesale at a loss.

    Could numbers be manipulated? yes. Everything can be skewed or they could simply rewrite the rules as to how they classify a new home just like how they rewrote the rules on CPI. If something gets out of line, replace it with something that is in line.
     
  8. Ready

    Ready or getting there...

    From a lot of reading over the last several months, I've found 98% of foreclosures in the US were people who own investment properties. These folke over the last 10-15 years have been buying 2nd and 3rd homes for investment purposes, and when the economy slows. (slams to a stop). People seem to stay where they are rather than buying a larger home every so many years.Just like 401ks and other investments, these people are not selling, and too scared to hold on to investments that are not a sure thing.So I believe there panicing and selling for what they can get, and reinvest into more stable assets.The mainstream driveby's are'nt reporting it this way, but honesty is no longer their priority. On a good note, that means 15% of families are not being thrown into the streets. Although homesteaders are loosing to the economy too, these numbers are scewed.
     
  9. turbohardtop

    turbohardtop Monkey++

    so anyone think the same? The existing home sales are up again so are customer sentiment/spending last week. I think this is very likely.
     
  10. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    Foreclosure sales are up and so is the change in the rate of homes being foreclosed our about to be foreclosed, and that is accelerating, not declining.
     
survivalmonkey SSL seal        survivalmonkey.com warrant canary
17282WuJHksJ9798f34razfKbPATqTq9E7