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In an announcement reminiscent of the early stages of the bursting housing bubble about five or six years ago, the Commerce Department reported (.pdf) that new homes sale rose last month, from a downwardly revised annual rate of 303,000 in September to a rate of 307,000 in October. September new home sales were originally reported at a 313,000 annual rate and, when comparing un-revised data to un-revised data, you get a decline in sales, but, comparing revised data to un-revised data produces a gain and rosy headlines.

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This kind of rationalization was about all there was to help a lot of real estate investors keep the faith back in 2006. Today, with new home sales running at about one-third the pre-housing bubble rate and with the home building industry flat on its back for the foreseeable future, it’s just kind of an interesting side note.