NEW YORK (CNNMoney.com) -- The stock selloff accelerated Wednesday after a report showed new home sales plunged nearly 33% in May, falling to their lowest level on record. [read more]This was reported as "unexpectedly" low sales in various media. Unexpectedly? Come on!
Last month at Carpe Diem, a post touted the economic recovery as exemplified by strong housing sales. I commented there:
May may be a disappointment for those seeking positive reinforcement.
An anecdote: my daughter-in-law's brother was rushing to complete a home purchase. All was set. Then the real estate agent failed to get the paperwork filed in time for the brother to get the tax credit. Deal off.
Despite low sales prices, buyers are just barely qualifying and then stretched themselves to get the tax credit. With that gone, the rush to buy is gone.
5/31/2010 5:55 PMAs I said, "Unexpectedly?"