Sales of newly built, single-family homes declined dramatically in May following the expiration of a popular home buyer tax credit program in the previous month, according to newly released figures by the U.S. Commerce Department."While today's numbers are sobering, they were to be expected at the conclusion of the tax credit program and are in keeping with the results of our latest home builder surveys," said Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. "Clearly the tax credits were very successful in drawing potential buyers back to the market.
"The big drop-off in new-home sales this May emphasizes how effective the tax credit program was in bringing home buyers back to the market while it was in existence," agreed NAHB Chief Economist David Crowe.
Sales of new homes declined across every region in May. The Northeast registered a 33.3 percent decline, the Midwest a 23.9 percent decline, the South a 25.4 percent decline, and the West a 53.2 percent decline.
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