Home sales in May were at a record low, according to the latest government report. This is what happens when tax credits expire. The New York Times has more:
The Commerce Department figures showed that new single-family homes sold at a seasonally adjusted annual rate of 300,000 in May, down 32.7 percent from the revised April rate of 446,000.
(One analyst) said the 32.7 percent drop was the largest since the government started compiling the data in 1963, surpassing the 23.8 percent decline in January 1994. The May sales rate is 18.3 percent below that of May 2009, when the figure was 367,000.
Joshua Shapiro, chief United States economist for MFR, said it would be wrong to see anything dire in one month’s data, but it did underscore how important the federal stimulus had been in propping up the market, suggesting that the stimulus had masked economic weaknesses.
Hello, double dip. Wonder if the Obama administration will come up with a new stimulus?