Tax Credit Fadeout Sends New Home Sales Plummeting

New home salesSales of new single-family homes virtually collapsed in May following the expiration of homebuyer tax credits, falling by a record 32.7 percent.
The Commerce Department’s report of a 300,000-unit annual rate for May was the lowest level recorded since such data tracking was initiated in 1963.
The May rate is 18.3 percent below the rate of one year ago.
Homebuyers had to sign by April 30 to qualify for up to $8,000 in tax credits.
April’s home sales figure was downwardly revised to 446,000 units.
The median sales price of new houses sold in May 2010 was $200,900; the average sales price was $263,400.
The seasonally adjusted estimate of new houses for sale at the end of May was 213,000.
This represents a supply of 8.5 months at the current sales rate – the highest level in nearly a year.
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