The Commerce Department says new home sales fell in May from a month earlier to a seasonally adjusted annual sales pace of 300,000. That was the slowest sales pace on records dating back to 1963.
It indicates that buyers left the market as federal tax credits of up to $8,000 expired at the end of April.
Economists surveyed by Thomson Reuters had expected a May sales pace of 410,000. April’s sales pace was revised downward to 446,000.
[Chris' thoughts on this: ]
These are experts? No, buyers didn’t “leave the market” when tax credits expired – it’s a simple matter of front-loading. You offer an incentive and the people who were intending to buy bought, and grabbed $8,000 of our money. But having captured future sales with this gimmick, where’s the surprise that there are fewer sales now? I’m no genius, so if I could see this coming, what’s wrong with the experts?