U.S. New Home Sales Collapse in May
The U.S. Census Bureau has released the new home sales figures for May, and to say they were dismal would be an extreme understatement. May is the first month reflecting new home sales since the expiration of the Obama administration’s tax credit for first time home buyers, so a decline was expected by economists. However, what was not expected was the collapse of the new home housing market in the United States, which is what the data just released indicated.
In May new home sales in the U.S.A. declined by 32.7 %, which reflects a seasonally adjusted rate of 300,000 home sale per year, a level not witnessed in America since the 1960s. Add in the also dismal used home sales in the U.S. and there you have Fed Chairman Bernanke’s “green shoots” of economic recovery from the global economic and financial crisis.
Double dip recession, anybody?
