According to a recent report from the National Association of Realtors, pending home sales fell 30 percent in May. Furthermore, the number seen is 15.9 percent lower when compared to the fifth month of last year.
"Consumers are rational and they rushed to meet the tax credit eligibility deadline in April," Lawrence Yun, chief economist for the NAR, said. "The sharp decline in contract signings in May is a natural result with similar low levels of sales activity anticipated in June."
The credit gave first-time buyers up to $8,000 for purchasing a home. Originally it was set to expire on November 30. However, Congress extended the deadline to April 30 while also opening up an opportunity for repeat purchasers.
Those homebuyers were eligible for as much as $6,500, provided that they were purchasing a new primary residence.
With the tax credit over, industry experts say that low mortgage rates and increased unemployment will play key factors in maintaining the housing market.
