New-home sales drop to lowest level on record in May after federal homebuyer tax credits end

WASHINGTON - 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.

The bleak report from the Commerce Department is the first sign of how the end of federal tax credits could weigh on the nation's housing market.

The credits expired April 30. That's when a new-home buyer would have had to sign a contract to qualify.

"We fear that the appetite to buy a home has disappeared alongside the tax  . . .

Read the complete article by By ALAN ZIBEL , Associated Press and published in the StarTribune