Home construction and permits dropped last month after a home buyer tax credit program was allowed to lapse, the Commerce Department reported.
construction and permits dropped last month after a home buyer tax credit
program was allowed to lapse, the Commerce Department reported.
single-family home building dropped 10 percent to a seasonally adjusted annual rate of
593,000 units - the slowest pace since December 2009. New permits declined 5.9
percent to a rate of 574,000 units, its slowest pace since May 2009, the department said.
builders tapped the breaks on new-home production and pulled fewer permits for
new homes in May in response to an expected lull in buyer demand following
expiration of the tax credits at the end of April," said Bob Jones,
chairman of the National Association of Home Builders and a home builder from Bloomfield Hills,
NAHB chief economist David
Crowe said the drop was expected.
numbers show an anticipated pull-back on single-family building following the
tax credit deadline," Crowe said. "No doubt, a certain amount of
building and buying activity that would have taken place in May was pulled
forward to accommodate the program's end date, which is why we have projected
some softening of the numbers in the second quarter. That said, in the coming
months, an improving economy, rising employment, low mortgage rates and
stabilizing home values should play their part to keep the housing market