Home Contracts Drop 30% In May

The National Association of Realtors stated that its seasonally adjusted index of sales agreements for sales of previously owned homes fell from 110.9 to 77.6 April to May respectively, which was also 15.9% lower than the same month the year prior. This national statistic clearly shows the power of the government incentives which expired. What baffles me though, is why the government set up housing to take such a blow… You don’t need to be a genius to know that in a fragile economy such as this incentives are like band-aids, and if you rip them off too soon you bleed! Sometimes the injury is even worse due to this action… From day 1 I questioned why they didn’t ‘phase out’ all incentive programs. BIG MISTAKE! I wonder what the next move is? Fortunately, our little microcosm of a market here in the East End is somewhat insulated and is not experiencing what other markets are but the overall buyer confidence in the old American Dream of ‘Home Ownership” is taking quite a beating here. Will someone up there on that hill use their head please… don’t rip off band-aids in this environment, rather, change the dressings wisely until we are out of the woods and the wound is healed.