Sales of new homes in Utah and much of the rest of the country dropped in May as many potential buyers stopped shopping for homes once they could no longer receive government tax credits.
Nationally, sales sunk 33 percent to the lowest level on record, according to a report from the Commerce Department. The numbers show just how much the end of federal tax credits could weigh on the nation’s housing market, even though Realtors locally and nationally point out that low prices and favorable mortgage rates still make a purchase attractive.
The credits expired April 30, the date when a new homebuyer would have had to sign a contract to qualify. Buyers must close before June 30 to complete the process.
Along the Wasatch Front, although official sales numbers aren’t available, builders took out permits for the construction of only 355 homes in May. That’s down from a monthly high for this year of 659 homes in March, according to Construction Monitor, a service that tracks building activity in the West. Builders take out a permit after a buyer has signed a contract to buy a home. The Salt Lake Tribune
