As I have warned in the past, we are far from a recovery in housing.
Bloomberg is reporting:
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.
Sales collapsed a record 33 percent to an annual pace of 300,000 last month from April, less than the median estimate of economists surveyed by Bloomberg News and the fewest in data going back to 1963, figures from the Commerce Department showed today in Washington. Demand in prior months was revised down.
“May was a bad month for the economy,” J. Alfred Broaddus, former Richmond Fed president, said in an interview on Bloomberg Television’s “In Business With Margaret Brennan.” When the Fed releases its policy statement today, its language on the economy will be “markedly more pessimistic,” he said.
The median sales price decreased 9.6 percent from the same month last year, to $200,900, today’s report showed.