There has been a lot made out of the flaws in the Department of Labor’s statmill lately and here is another example of it, but this time its much more severe (hat tip to [Lanser on Real Estate](http://blogs.ocregister.com/lansner/archives/2006/06/new_home_data_misleading_analy_1.html)).

According to [John Burns Real Estate Consulting](http://www.realestateconsulting.com/usanalysis/usanalysis200606.html), the recent stats are out of sync with reality. They show a spike in home sales when the construction industry shows a sharp drop. That also correlates with the [recent series of reports from home builders [TheStreet.com]](http://www.thestreet.com/stocks/homebuilders/10289910.html) in recent weeks. Construction is down because demand is down.

>the Census Bureau is reporting that new home sales are only down 6% from one year ago, which we know is incorrect. For accurate new home sales estimates, see the press releases of publicly traded home builders – all of whom are reporting sales (orders) that are down 20% – 40% from one year ago. The [NAHB](http://www.nahb.org/default.aspx) Housing Market Index, as well as almost every industry source we contact each month, supports the fact that sales are down 20%+ from one year ago in more than 70% of the markets we track (Texas, the Carolinas, Georgia and New Mexico are some of the major exceptions).

I hope the Fed sees through this as well when they make their next move (who am I kidding, they will be raising rates at the next FOMC meeting). I hope they are able to see the real estate economy the way it is, not the way it is reported.