Sales of previously built homes dropped in May after huge gains the previous two months, a sign that the federal tax credit that helped energize sales at the start of the selling season has sputtered out sooner than expected.
The National Association of Realtors reported Tuesday that sales of existing single-family homes, townhouses, condominiums and cooperatives fell 2.2 percent, to a seasonally adjusted rate of 5.66 million units, in May from April, snapping hopes of a robust housing recovery anytime soon. Analysts surveyed by Bloomberg had expected an increase of 6 percent.
Sales stalled or dropped in most parts of the country even though interest rates and home prices remain relatively low. In the Northeast, sales plunged 18.3 percent after surging in April. They stagnated in the Midwest and South. The only month-over-month gain was in the West, where sales rose 4.9 percent.
Click here to read the full article …
