New Home Sales Plunge Following Expiration of Homeowner Tax Credit
New home sales drop nearly 33% (and they’re attributing the drop to the expiration of the credit). Sales for March and April revised sharply lower - erasing any meager effect that the tax credit could have had.
No, what we’re seeing is that the homeowner tax credit had next to no effect on the real estate market and that the fundamentals are awful in the real estate sector. That bodes poorly for seeing a recovery anytime soon in the market. Prices in many markets still need to correct, and credit remains tight for those who are in a position to buy.
And there are fewer people in such a position because of continued concerns over the job market.