The housing tax incentive for home buyers has ended. This incentive was for housing what 'cash for clunkers' was for vehicles. Now that the artificially pumped up sales have ended, the inevitable has happened. New home sales have collapsed to the lowest level since the year JFK was assassinated. That breaks a low housing sales record that has stood for 47 years.
Sales of new homes collapsed last month, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer get government incentives.
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.