New-home sales plunge 33% with tax credits gone

— Sales of new homes collapsed in May, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer receive government tax credits.

New-home sales in May fell from April to a seasonally adjusted annual sales pace of 300,000, the government said Wednesday. That was the slowest sales pace on records dating to 1963. And it’s the largest monthly drop on record.

New-home sales made up about 7 percent of the housing market last year. That’s down from about 15 percent before the bust.

Read tomorrow's Arkansas Democrat-Gazette for full details.

Thank you for coming to the Web site of the Arkansas Democrat-Gazette. We're working to keep you informed with the latest breaking news.

Upcoming Events