Holy cancellation rate...

One other thing I just noticed while scanning the headlines this morning: M/I Homes reported a stunning 61% decline in net new home orders in the fourth quarter. The culprit: a gigantic 63% cancellation rate. That compared to 27% in 2005, according to a statement. Here in Florida, net new contracts were actually NEGATIVE 50, vs. 409 a year earlier.

While 63% is the worst cancel rate I've seen reported so far, rates are high throughout the industry. That, in turn, makes somewhat of a mockery of the Census Bureau's official new home inventory and sales stats, which do NOT take into account the impact of cancellations of previously signed contracts.