New home sales plummet to record low

By Hibah Yousuf, staff reporter

NEW YORK (CNNMoney.com) -- 


New home sales plummeted to a record low in May, the first month following the expiration of the homebuyer tax credit. [No freakin' kidding!] This snapped a two-month streak of gains.

New home sales declined 32.7% to a seasonally adjusted annual rate of 300,000 last month, down from an downwardly revised 446,000 in April, the Commerce Department reported Wednesday. Sales year-over-year fell 18.3%

This is the slowest sales pace since the Commerce Department began tracking data in 1963. The prior record was set in September 1981, when new homes sold at an annual rate of 338,000.

"We expected a slowdown, but the extent of this decline was a surprise," said Anika Khan, an economist at Wells Fargo. The figure was even worse than her relatively pessimistic forecast of an annual rate of 380,000 in May.  [Doesn't sound to good at all.   With an expected drop in home values near 50% You'd have to be an idiot or listen to lamestream media to buy now anyway.]

New-home sales plunge 33% to record low in May

The results were much worse than expected, [who pays these turds?  Worse than expected?  Let's see,  no jobs, Europe is going done the toilet, China disengages the dollar,  and things are worse than expected?  Somebody needs to be fired if they couldn't see this coming.]  and economists had expected a 20% decline to a seasonally adjusted annual rate of 405,000. See complete economic calendar and consensus forecast.
U.S. stock markets dropped quickly on the news. Gold prices also fell. See full story on the market reaction.

That sales fell was "not at all surprising," wrote Dan Greenhaus, chief economic strategist for Miller Tabak & Co. "However, we would be lying if we said the size of the drop was not shocking."

"By the fall, we expect the very favorable affordability picture to start pulling people back into the market, [by people, you would mean those who have a job?   Wishful thinking is not going to fix this mess.  and lying, cheating banksters are just going to keep up thier lying, cheating ways.  The have a compliant congress, aiding and abetting them all the way.   good luck with that]  but the next few months are likely to be very grim," wrote Ian Shepherdson, chief U.S. domestic economist for High Frequency Economics, who predicted the number precisely.

Bloomberg

Sales of U.S. New Homes Plunged to Record Low in May

Purchases of new homes in the U.S. fell in May to a record low as a tax credit expired, showing the market remains dependent on government support.

A report yesterday showed sales of previously owned homes unexpectedly fell in May, adding to concern the retrenchment following the end of the tax incentive will be deeper than anticipated. Existing house purchases, calculated when a contract closes, dropped to a 5.66 million annual rate, the National Association of Realtors said.

[If they think a few jobs will fix this,  they have another thing coming.   The banksters are still in power,  The Constitution according to Obysmal is still in operation,  and the incredibly myopic, self-serving, criminal, liberal congress still has power for the time being.   Good luck!]


A breath of fresh, honest air. . . 

Recovery? WHERE?

What sort of abject bullshit have the folks on Tout TV been running?

June 23 (Bloomberg) -- Purchases of new homes in the U.S. fell in May to a record low as a tax credit expired, showing the market remains dependent on government support.

The entire economy is dependent on government support.

But the government has no money.  It is in fact borrowing nearly as much as it takes in via taxes.