New Home Sales Plunge As Tax Credits Come To An End

altKnow anyone with her house on the market? Today's release of new home sales figures showed a drop in May lower than anyone predicted of 33%. By the end of May, the annual pace was 300,000 new home sales, so chances are the length of time a home will be on the market is getting longer.

We know the job market has been sour for a while now, making it difficult for many to be buying and selling homes, so why the sudden drop? The end of governmental incentives.

Until the end of April, federal tax credits, some as high as $8,000, were offered to potential buyers. Now, those in the market for a new home have stopped shopping around. What the housing market (and just about everything else) depends on now are more jobs and consumer confidence to bring numbers back up.

If you’ve been keeping an eye on the stock market, you know that stocks have slid as a result of this news. We’ve told you before, but for the sake of keeping your head glued on tight, no matter how crazy the stock market might seem (today, tomorrow, any day) do not rush to buy or sell your investments. We hope the market will work itself out, but in the meantime, try not to panic. Before you do anything drastic, we have plenty of things you can do to stay calm and ride out the storm.

For more specifics on the drop, check out the Bloomberg article from this morning.

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Follow Elizabeth Jacobs on Twitter @nylizard1! Follow LearnVest on Twitter @LearnVest!

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