The U.S. Census Bureau and the Department of Housing and Urban Development reported that May saw sales of new single-family homes at an annual rate of 300,000. That marks a 32.7 percent drop compared to April of this year and an 18.3 percent decline from May 2009.
The results may give further credence to a recent index released by the National Association of Home Builders, which noted that builder confidence in the market for single-family homes dropped in June. In prior months, the NAHB saw builder attitudes improve a bit, which was tied to the homebuyer tax credit from the government.
Through the credit, first-time homebuyers were eligible for up to $8,000, while repeat purchasers could have seen as much as $6,500. As the incentive faced its end on April 30, an increase in homebuying was witnessed as consumers tried to get in under the deadline.
Now that the credit is over, buyer interest may wane, leading to fewer sales and construction starts.
