New Home Sales Plunge 33% in May

More great news from Obamaland.

WASHINGTON (Reuters) - Sales of new single-family homes tumbled more than expected to a record low in May as the boost from a popular tax credit faded, according to a government report on Wednesday that added to worries of a slowing economic recovery.

The Commerce Department said sales dropped a record 32.7 percent to a 300,000 unit annual rate, the lowest level since record keeping started in 1963, from a downwardly revised 446,000 units in April. The fall unwound two months of gains, which had been inspired by a government tax credit for home buyers. Prospective home owners had to sign contracts by April 30. Analysts polled by Reuters had forecast new home sales sliding to a 410,000 unit-pace from April's previously reported 504,000 units. New home sales are measured at contract signing. A report on Tuesday showed sales of previously owned homes, which are recorded at contract closing, fell unexpectedly in May.