The Commerce Department has released figures that show that new home sales have dropped to a record low — down 33% from April. The drop isn’t unexpected, but it does show to what extent the market was being propped up by the tax credit for new home buyers.

From the NYT:

“That new home sales would decline in May following the expiration of the home buyers credit is not at all surprising,” said Dan Greenhaus, chief economic strategist for Miller Tabak, in a research note. “However, we would be lying if we said the size of the drop was not shocking.”

The 32.3% drop was the largest since the government started keeping records in 1963.

U.S. New Home Sales Drop 33% in May [NYT]

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