The U.S. Commerce Department noted that new-home sales fell by 3.6 percent during the month, which results in an annual rate of 402,000. The number of new homes for sale at the end of September came in at a seasonally-adjusted rate of 251,000.
The news in declining home sales comes as a government tax credit for first-time homebuyers is about to expire. The credit, which gave an $8,000 tax incentive to first-time buyers, is set to expire on November 30. As a result, people who are shopping for homes now probably won't be able to close on their sales in time to take advantage of the credit.
Though the credit is about to expire, members of the Senate are mulling plans to extend it. One proposal would extend the full tax credit through March of next year. After that time, the value of the credit would decrease by $2,000 every few months until October, with the credit expiring entirely in at the end of December.
